SolarEdge plans 16% workforce reduction in cost-cutting move

Israel-based photovoltaic (PV) inverters and batteries supplier SolarEdge Technologies Inc (NASDAQ:SEDG) intends to cut roughly 16% of its global workforce as part of a restructuring plan aimed at reducing costs.

The move will affect about 900 employees, including 500 workers at manufacturing sites, SolarEdge said on Sunday.

The proposed headcount reduction aims to lower the company’s operating expenses and align its cost structure to current market dynamics. The measure comes after the PV technology provider discontinued its production activities in Mexico, trimmed its manufacturing capacity in China and shuttered light commercial vehicle e-mobility activities.

“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," CEO Zvi Lando said, adding that the changes would not impact the group’s “strategic direction and priorities.”

SolarEdge booked a third-quarter 2023 net loss of USD 61.2 million (EUR 56.2m) after its business was hit by weak market conditions and high inventory levels. Given the continuing inventory destocking process, it guided for revenues of between USD 300 million and USD 350 million in the fourth quarter of 2023, a drop from USD 890.7 million a year earlier.

(USD 1.0 = EUR 0.918)

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