SolarEdge Layoffs: 16% Staff Cuts at Solar Energy Company
January 21, 2024 by Joe Panettieri
SolarEdge Technologies layoffs will impact roughly 900 employees -- or approximately 16% of staff at the solar energy technology company.
The SolarEdge job cuts reinforce a familiar solar energy layoff trend in the overall renewable energy market. Although global demand for solar energy continues to grow, the market has faced multiple headwinds since early 2023.
Among the key challenges: High interest rates made renewable energy infrastructure projects especially costly to finance. Numerous solar consulting, integration and distribution partners have suffered revenue setbacks amid project delays and cancellations.
The SolarEdge layoffs are part of a larger restructuring plan to "reduce operating expenses and align its cost structure to current market dynamics," the company said. Ahead of the cuts, SolarEdge discontinued manufacturing in Mexico; reduced manufacturing capacity in China, and terminated light commercial vehicle e-mobility activity, the company added.
In a prepared statement about the job cuts and business plan, SolarEdge CEO Zvi Lando 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. 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.”
SolarEdge plans to share more details when the company announces quarterly financial results by the end of February 2024. An exact earnings announcement date was not disclosed. In the meantime, SolarEdge's stock ($SEDG) is down more than 75% over the past 12-months, according to SeekingAlpha.
Solar Energy Market: Why Layoffs Have Arrived
Concerns about solar market revenues began to emerge in mid-2023, when analysts at Susquehanna cut price targets on several top companies in the solar energy sector, saying "recent industry checks and conversations with installers and equipment providers suggest softening demand across the U.S. market," SeekingAlpha reported.
At the time, Susquehanna issued target price cuts on such stocks as Enphase Energy, Sunnova Energy, SunPower, Sunrun and SolarEdge Technologies, the report said.