SolarEdge layoffs will impact 400 employees, the solar technology company disclosed in an SEC filing.
The SolarEdge job cuts are part of a larger plan to "regain financial stability, better enabling us to achieve our organizational objectives this year and driving our return to profitable growth," CEO Shuki Nir wrote to SolarEdge employees in a memo dated January 6, 2025.
Nir, formerly chief marketing officer, rose to the CEO position in December 2024. The latest job cuts will save SolarEdge roughly $9 million to $11 million per quarter, the company estimated.
Related: Sustainability and Climate Tech Industry Layoffs Timeline
SolarEdge: Multiple Rounds of Layoffs Ahead of Safe Harbor Agreements
SolarEdge has had roughly three rounds of layoffs since early 2024, including 500 job cuts in November 2024, and 16% staff cuts in January of 2024.
In its third quarter ended September 30, 2024:
- SolarEdge revenue was $260.9 million, down 64% from the corresponding quarter in 2023.
- GAAP net loss was $1.21 billion, compared to a $61.2 million GAAP net loss in Q3 of 2023.
Amid that backdrop, SolarEdge's stock is down roughly 80% from January 2024 through January 6, 2025, according to SeekingAlpha.
SolarEdge, founded in 2006, is based in Herzliya, Israel. The company's focus includes PV (photovoltaic) systems, storage, EV charging, batteries, and grid services solutions. The SolarEdge partner program includes numerous distributors.
On the partner front, multiple safe harbor agreements and a second 45X credit sale will "help help our partners to secure a reliable supply of high-quality, domestically-produced equipment," Nir said in a prepared statement.
Solar Energy Market Growth, Layoffs and Business Challenges
At first glance, the solar power industry looks healthy. Indeed, worldwide solar capacity grew 29% in 2024 compared to 2023, Ember estimates. Roughly 75% of those new installs occurred in China, the United States, India, Germany and Brazil, the researcher said.
But take a closer look and multiple factors crushed numerous solar energy technology companies in 2024. Among the challenges: Heightened interest rates -- at least compared to the Zero Interest Rate Policy (ZIRP) years -- has forced some consumers and businesses to abandon or delay financing for potential solar projects. The situation is particularly challenging in California, which slashed solar power incentives in 2023.
