Maxeon Solar to cut global workforce by 15% after Q3 headwinds

Singapore-based Maxeon Solar Technologies Ltd (NASDAQ:MAXN) is undertaking restructuring actions that are expected to reduce its global headcount by about 15%, with most of the job cuts anticipated by the end of the year.

The company made the announcement today as it said its third-quarter performance was hit by reduced shipments to its largest distributed generation (DG) customer in the US and a demand slowdown in the global DG markets.

"[A]s disclosed in our last earnings call, our largest US DG customer breached their payment obligations under our current Master Supply Agreement (MSA) and we paused shipments in late July as a result,” explained chief executive Bill Mulligan. It is still unclear when the matter will be resolved.

The solar manufacturer provided preliminary third-quarter revenue and shipment results that are in the table below, compared to its guidance in August.

The range of the adjusted EBITDA guidance, previously set at USD 2 million-12 million, is now expected to be reduced by about USD 30 million (EUR 28.4m).

"As a result of rapidly changing market and industry conditions, we have acted decisively to streamline our operations, invest in new technology, and adjust our mix between the DG and utility-scale markets," said Mulligan.

Maxeon Solar’s third-quarter earnings call is planned for November 15.

(USD 1 = EUR 0.945)

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