Israel-headquartered SolarEdge Technologies is expected to cut about 900 jobs from its global workforce as the company seeks to reduce operating costs.
SolarEdge on Jan. 21 said it would lay off about 16% of its employees. CEO Zvi Lando in a statement said, “We have made a very difficult, but necessary decision to implement a workforce reduction and other cost-cutting measures in order to align our cost structure with the rapidly changing market dynamics.” The company in November said it was reducing its fourth-quarter revenue expectations because of weak demand for its solar inverters. SolarEdge said it expected 4Q2023 revenue to come in at $325 million, down 55% from the previous quarter, and off 64% year-over-year.
SolarEdge is expected to provide more details of its operations in its next earnings release.
Lando said, “We are making every effort to treat our departing colleagues with respect and gratitude for their contributions and support them in their transition. We remain confident in the long-term growth of the solar energy market and our leading position in the smart energy space.
“These changes do not impact our strategic direction and priorities and we remain committed to continue to drive the renewable energy transformation, while providing best in class technology and support to our customers,” Lando said.
Solar companies are being challenged by lower demand for their products in the U.S. and Europe. A metering reform measure in California, the largest solar market in the U.S., has dampened demand there. Companies in European markets are dealing with bloated inventories as demand there has slowed.
SolarEdge already has stopping its manufacturing in Mexico and reduced its production capacity in China. It also has stepped away from its light commercial electric vehicle business.
The company in a filing on Monday said it will record the costs of those actions in its fourth-quarter 2023 earnings report. The filing said it will report restructuring and asset-related charges of $59 million to $66 million. It said ending its e-mobility activity will bring charges of $36 million to $41 million, which includes money related to inventory write-offs and non-cancelable purchase orders.
—Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).
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Author: Darrell Proctor