Hyliion, an energy-technology company headquartered in Cedar Park, plans to cut 175 employees, or 67% of the workforce, according to public filings with the U.S. Securities and Exchange Commission.

The background

The transportation startup designs and manufactures fuel-efficient and hybrid engine technology for commercial vehicles.

In 2018, the company moved its headquarters to Cedar Park following a $1.27 million incentive agreement with the city. At the time, the company planned to create more than 200 new jobs in the area.

Hyliion completed the expansion of its headquarters in 2022, anticipating to grow its workforce to 500 people, according to the city of Cedar Park's 2022 Financial Report.

How we got here

On Nov. 8, Hyliion Holding Corp. officials announced the company would be slowing down the production of its hybrid electric powertrains, citing "lower-than-expected industry adoption of electrified commercial vehicle solutions," as well as increasing costs and changing regulatory requirements.

The details

According to a Worker Adjustment & Retraining Notification Notices letter to the Texas Workforce Commission, 150 layoffs will occur within 60 days of Nov. 8, and all layoffs are expected to be permanent.

Further details on how the Cedar Park headquarters will be affected could not be immediately confirmed with Hyliion.

What now?

Going forward, company officials said there will be a shift to focus on the KARNO electric generator, which was acquired from General Electric in 2022.

“Our focus on KARNO aligns with the growing demand for electricity. With commercial deliveries planned for the upcoming year, the KARNO generator offers a more capital-efficient path to market,” CEO and Founder Thomas Healy said in a press release.

Fran Irwin, Cedar Park's director of community affairs, said the city is aware of the layoff announcement.

"We are in contact with Hyliion representatives and are currently evaluating the terms of the economic development agreement between Hyliion and the city of Cedar Park," Irwin said in an emailed statement.