SolarEdge to Cut Workforce by 16%
22 January, 2024
The restructuring plan includes reduction of production capacity and workforce by 900 employees, of which approximately 550 are from the Company’s offices and a manufacturing site in Israel
Photo above: Zvi Lando, Chief Executive Officer of SolarEdge
SolarEdge Technologies announced a restructuring plan designed to reduce operating expenses and align its cost structure to current market dynamics. The workforce reduction impacts approximately 16% of the SolarEdge global workforce, or approximately 900 employees, of which approximately 550 are from the Company’s offices and a manufacturing site in Israel. The reduction follows measures which the Company has already taken to align its operations, including discontinuation of manufacturing in Mexico, reduction of manufacturing capacity in China, and termination of the Company’s light commercial vehicle e-mobility activity in Italy.
SolarEdge creates smart energy solutions for solar power market, including intelligent Inverters and Optimizers for photovoltaic (PV) systems, Storage solutions, EV charging, Batteries and Grid Services solutions. During the third quarter 2023 the company witnessed sharp and unexpected decline: Q3 revenues dropped down by 27% compared with the prior quarter to $725.3 million, and down 13% from $836.7 million in the same quarter 2022.
“The results for the third quarter are reflecting a slow market environment,” said Zvi Lando, Chief Executive Officer of SolarEdge. “During the second part of the third quarter of 2023, we experienced substantial unexpected cancellations and pushouts of existing backlog from our European distributors. We attribute these cancellations and pushouts to higher than expected inventory in the channels and slower than expected installation rates.
“In particular, installation rates for the third quarter were much slower at the end of the summer and in September where traditionally there is a rise in installation rates.” Additionally, the Company anticipates significantly lower revenues in the fourth quarter of 2023 as the inventory destocking process continues. Following the announcement of the restructure plan, SolarEgde stock in NASDAQ rose by approximately 3% and the company is traded in a evaluation of $3.9 billion.