SunPower to slash jobs, close units in cost-cutting drive

US residential solar company SunPower Corp (NASDAQ:SPWR) intends to reduce its workforce and shut down direct sales divisions in a restructuring move aimed at cutting costs and simplifying the business model.

The plan covers the lay-off of about 1,000 employees over the coming days and weeks, SunPower's principal executive officer Tom Werner said in a letter to employees on Wednesday.

SunPower Residential Installation (SPRI) locations and SunPower Direct sales will be shuttered as the company transitions to a low fixed-cost model.

“To position SunPower for the future, we need to achieve financial viability, which includes simplifying our business structure, transitioning away from areas where we have been unable to sustain profitable operations, and improving financial controls,” Werner said.

SunPower, which at the start of 2023 had 4,710 full-time employees, booked a USD-247.1-million (EUR 230.4m) net loss in the past year against a profit of USD 42.8 million in 2022 as revenues contracted and operating costs grew. The company explained it has been taking steps to enhance its financial controls but the market has been slow to recover, requiring a strategy shift.

Following a transition period, all project pipeline operations from pre-installation through system activation will now be performed by subsidiary Blue Raven Solar, installation partners and certified dealers. SunPower will continue investments in its New Homes business, keep operations and maintenance (O&M) activities and serve its dealer network and installation partners, it said.

(USD 1.0 = EUR 0.932)

Choose your newsletter by Renewables Now. Join for free!