-By ArdorComm News Network
January 22, 2024
In a strategic move to streamline operations and cut operating costs, SolarEdge Technologies announced on Sunday that it will be implementing a significant workforce reduction, affecting approximately 16% of its global workforce, or roughly 900 employees. This decision comes on the heels of the firm’s recent strategic shifts, including the discontinuation of manufacturing operations in Mexico, a reduction in manufacturing capacity in China, and the termination of light commercial vehicle e-mobility activity.
CEO Zvi Lando explained the rationale behind the tough decision, 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 company had previously adjusted its fourth-quarter revenue expectations in November, citing weak demand for its solar inverters. The solar industry, particularly in Europe, has experienced a slowdown over the past year due to excess inventories and weakening demand. 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 lower demand for solar products.
SolarEdge’s strategic measures reflect the company’s proactive response to the evolving dynamics of the solar market, aiming to position itself effectively in the face of challenges. The announcement underscores the broader trends and challenges within the renewable energy sector, as companies navigate market shifts and seek to optimize their operations in a rapidly changing environment.