Plug 22 jobs Power cuts

However, Conway said that those quality-control issues did not directly result in the layoffs. He added that no customers have been lost.

"I wouldn't say it's a direct result of any one factor," Conway said. "We've discussed the quality issue (with analysts, shareholders and customers). Those issues have been addressed. There's not a direct correlation. Overall, it's been a challenging year."

Over the first nine months of 2012, Plug power inverter has increased revenues significantly, pulling in $20 million during that period versus $15 million during the same nine-month period a year ago. However, the cost of bringing in that revenue increased more than $9 million this year over last, resulting in an operating loss of $27 million, compared to $24 million for the first nine months of 2011.

A big reason for that increased cost is that the company is shipping more fuel cells than ever. Another reason, however, was millions of dollars in warranty claims from "component quality issues," the company said in its most recent quarterly filing with the SEC.

COLONIE — Plug Power, the Latham fuel cell manufacturer, let 22 full-time employees go last week as part of a restructuring plan that will save the company as much as $4 million annually in operating expenses.

The company revealed the cost-cutting move in a brief filing with the U.S. Securities and Exchange Commission. Over the next few months, the company will be paying out roughly $600,000 in severance and related expenses.

The job cuts were done with as little impact as possible on the company's manufacturing operations, which are done on-site at its headquarters on Albany Shaker Road near the airport, said Gerard Conway Jr., Plug Power's general counsel. Both salaried and hourly workers were affected.

For instance, grid tie inverter one of the jobs that was eliminated was investor relations, which does not have a direct impact on manufacturing. Plug Power makes hydrogen-powered fuel cells that power lift trucks used in warehouses and distribution centers run by companies like FedEx, Wegmans and Proctor & Gamble. Conway says that since only a "handful" of large investors own a majority of the company's shares, the company can get by for now without someone dedicated full time to that outreach effort.

Plug Power also runs on "lean" manufacturing principles and uses part-time workers for its manufacturing and assembly so that it can increase or decrease its staffing in that area week-to-week based on its order flow. As of the company's last annual report, Plug Power reported that it used 45 part-time employees out of a total workforce of 195. Conway says that those part-time workers supplement a "core" group of full-time manufacturing employees.

Conway said the decision to let go of nearly two dozen employees was done in an attempt to "do what we're doing more efficiently." The cuts will save the company between $3 million and $4 million annually, the company said in the SEC filing.

Over the past two quarters, Plug Power CEO Andy Marsh has revealed problems with suppliers sending the company parts that were not made to the correct specifications. In one case, solar panel the issues led to a fire at one customer's site. Those issues have hurt the company's ability to fill orders on time.