SolarEdge Technologies to Cut 900 Jobs Amid Cost-Cutting Measures

By Editor


SolarEdge Technologies has revealed its decision to implement a significant reduction in its global workforce, constituting approximately 16 percent of its employees, as part of a broader effort to streamline operational costs.

The move comes in the wake of the company’s strategic measures, including the cessation of manufacturing operations in Mexico, a reduction in manufacturing capacity in China, and the termination of its light commercial vehicle e-mobility activity.

Approximately 900 employees will be affected by the workforce reduction, a measure deemed necessary by SolarEdge Technologies to align its cost structure with the swiftly evolving dynamics of the market.  SolarEdge Technologies said 500 employees at its manufacturing sites will lose the job.

SolarEdge Technologies has reported revenues of $725.3 million in Q3 2023, down 27 percent from $991.3 million in the prior quarter and down 13 percent from $836.7 million in the same quarter last year.

SolarEdge Technologies’s revenues from the solar segment were $676.4 million, down 29 percent from $947.4 million in the prior quarter and down 14 percent from $788.6 million in the same quarter last year.

SolarEdge Technologies’s gross margin was 19.7 percent, down from 32.0 percent in the prior quarter and down from 26.5 percent in the same quarter last year.

SolarEdge Technologies CEO Zvi Lando addressed the challenging decision in a statement, stating, “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 renewable energy firm had already adjusted its fourth-quarter revenue expectations in November, citing weak demand for its solar inverters, Reuters news report said.

The solar industry’s growth in Europe has experienced a slowdown over the past year, attributed to excess inventories and a decline in demand. Simultaneously, in the United States, factors such as higher interest rates and a metering reform in California, the country’s largest solar market, have contributed to a decrease in demand for solar products.

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