SolarEdge, an Israel-based inverter manufacturer, says it plans to cut about 900 jobs as part of a restructuring plan “designed to reduce operating expenses and align its cost structure to current market dynamics.”
From pv magazine global
SolarEdge announced a global workforce-reduction plan that will affect approximately 900 employees, or about 16% of its total workforce.
The company said the reduction is part of a restructuring plan “designed to reduce operating expenses and align its cost structure to current market dynamics.” It said it will provide more details in an upcoming end-of-year earnings release.
“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,” Chief Executive Zvi Lando said. “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.”
The company said the job losses are the latest in a series of measures it has taken to align with current market conditions. It has shut down manufacturing in Mexico, reduced manufacturing capacity in China, and terminated its light commercial vehicle e-mobility activity.
Earlier this month, U.S. investment firm BlackRock, which is SolarEdge’s biggest shareholder, increased its stake in the company to 15.8%.
After a poor Q3, 2023 earnings report in early November, SolarEdge saw its stock drop precipitously. The company had reported a Q3 adjusted loss of 55 cents per share, which missed earnings estimates of 68 cents, and in the hours following the report, its stock price immediately fell 10% to 20%.
In December pv magazine USA reported that the S&P Dow Jones Indices will move SolarEdge (NASD: SEDG) from the S&P 500 to the S&P SmallCap 600 prior to the open of trading on December 18. For Q3 2023, the company posted revenues of $725 million, $676 million of which is from its solar segment.
The company’s share price dropped by 67% in 2023 and falling by almost 80% from its peak in 2021. However, looking ahead to Q4, SolarEdge provided guidance of $325 million in revenues.
