Challenges Hit NuScale Power as Layoffs Cut 40% of Workforce

NuScale Power (NYSE:SMR) saw a steep decline of 8.4% in Friday’s trading, marking its lowest close in six weeks. This was spurred by a report from the HuffPost indicating the struggling nuclear energy company has laid off approximately 40% of its workforce.

At a virtual all-hands meeting, NuScale (SMR) announced the job cuts today, confirming the HuffPost report.

At the beginning of the year, the Oregon-based company boasted a workforce of over 550 employees. However, with a 40% reduction, more than 200 individuals could face the prospect of unemployment.

Despite securing crucial government approvals for its technology and gaining $600M in federal backing, NuScale (SMR) faced a setback in November when a consortium of power agencies retracted their plan to construct one of the company’s small modular reactors in Idaho.

Notwithstanding its recent struggles, NuScale (SMR) reported just under $200M in cash reserves in its latest quarterly earnings. Regrettably, nearly 40% of this amount is tied up in restricted accounts, posing a challenge for the company’s financial flexibility.