SolarEdge Implements Workforce Reduction as Part of Cost-Cutting Measures

SolarEdge Technologies Inc. announced on Sunday its decision to lay off approximately 16% of its workforce, amounting to about 900 employees. This move is part of the company’s broader restructuring initiative aimed at reducing operating costs.

Chief Executive Zvi Lando stated, “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.”

SolarEdge specified that around 500 of the job cuts will take place at its manufacturing sites. The Israel-based solar-power company had previously ceased manufacturing operations in Mexico, downsized its manufacturing capacity in China, and abandoned plans for a light commercial vehicle.

Further details of the restructuring plan will be disclosed in SolarEdge’s upcoming earnings release, expected by the end of February.

Over the past 12 months, SolarEdge shares (SEDG) have experienced a 77% decline. In November, the company reported an unexpected third-quarter loss, citing a slowdown in solar installations. It also projected significantly lower sales for the current quarter.

Solar stocks, in general, have faced challenges in the past year, with solar-panel companies grappling with weaker demand amid high interest rates. SunRun Inc. (RUN) witnessed a 50% decline over the same period, while Enphase Energy Inc. (ENPH) and SunPower Corp. (SPWR) experienced drops of 53% and 81%, respectively.

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