First Mode, a Seattle-based company focused on reducing carbon emissions in heavy industries, has announced a significant round of layoffs expected to occur in early August. The layoffs could impact up to 50% of the company’s global workforce, with impacted employees in the U.S. being notified the week of August 5. These layoffs come as part of ongoing business optimizations aimed at aligning the company with the market and improving its attractiveness to investors.
The layoffs at First Mode are part of a broader effort to shift the company’s business strategy towards reducing carbon emissions. For the past few years, First Mode has been developing powertrain conversion kits for heavy mining trucks, with a focus on switching from diesel power to zero-emission hydrogen-battery power. However, in January, the company announced a strategic pivot to prioritize hybrid diesel-battery powertrains as a lower-cost route to reducing emissions. Despite the layoffs, First Mode has continued to move forward with its business initiatives, including a recent strategic alliance with Mitsui & Co. to accelerate the adoption of cleaner energy solutions in heavy industry.
The layoffs at First Mode are part of a broader trend in the industry, as companies reassess the viability of hydrogen-based solutions for reducing emissions. The delays in the development of the global clean hydrogen economy have led to workforce reductions at several companies, including California-based Universal Hydrogen and Washington-based magniX. This shift in strategy has also impacted other industries, such as mining, as seen with Australia-based Fortescue’s recent job cuts as part of a restructuring plan reflecting a less positive outlook for low-cost “green” hydrogen.
Despite the challenges faced by the industry, First Mode remains committed to its mission of reducing carbon emissions in heavy industries. The company has opened a new factory in Seattle to manufacture conversion kits for heavy mining trucks, and continues to operate facilities in various locations around the world. First Mode’s focus on hybrid diesel-battery powertrains reflects a pragmatic approach to achieving emission reductions, acknowledging the current limitations of hydrogen-based solutions and adjusting its strategy accordingly.
The layoffs at First Mode have come as a surprise to employees, who were notified of the impending job cuts through a memo from the company’s chief people officer. The layoffs are part of a broader effort to align the company with market trends and maximize opportunities for growth. As the company continues to navigate the complexities of the evolving clean energy industry, it remains committed to finding innovative solutions to reduce emissions and tackle the challenges of climate change.
The layoffs at First Mode highlight the ongoing challenges faced by companies in the heavy industries sector as they work to reduce carbon emissions and transition to cleaner energy solutions. The industry-wide reassessment of hydrogen-based technologies reflects the broader trends in the market and the need for companies to adapt their strategies accordingly. First Mode’s commitment to reducing emissions through hybrid diesel-battery powertrains and other innovative solutions positions the company as a key player in the evolving landscape of clean energy technology.
