Renewable power company FuelCell Energy said on Friday it had laid off 22% of its workforce, as part of a global restructuring plan to reduce its operating expenses by 30% from a year earlier.

Shares of the Danbury, Connecticut-based company rose more than 40% following the announcement.

High interest rates and policy uncertainties around capital-intensive clean energy projects have forced many renewable energy firms to reevaluate their expansion plans.

FuelCell said the new plan, focused on its operations in the U.S., Canada and Germany, follows a global operational restructuring in November that included reducing its workforce by nearly 13% and cutting operating expenses by 15% for 2025.

The company said the plan is to protect its position "amid slower-than-expected market investments in clean energy."

"Our priorities remain clear: reduce our discretionary spending, decrease our cash burn, and accelerate our trajectory toward our ultimate goal of sustained, positive adjusted EBITDA." CFO Michael Bishop said.

The company reported adjusted core loss of $19.3 million for the quarter ended April 30, higher than Wall Street expectations of $16.1 million, according to data compiled by LSEG.

As part of the restructuring plan, the company, among other methods, also plans to amend the production schedule for one of its manufacturing facilities to align with contracted demand rather than forecasted demand.

The company said it has a total of about 426 employees worldwide following the latest reduction in workforce.