(Reuters) -SolarEdge Technologies said on Sunday it would lay off about 16% of its global workforce in an attempt to reduce operating costs.
The job cuts, which would affect roughly 900 employees, came after SolarEdge discontinued manufacturing in Mexico, reduced capacity in China, and terminated light commercial vehicle e-mobility activity.
Costs related to these actions will be recorded in the fourth quarter of 2023, with restructuring and asset-related charges of $59 million to $66 million, the company said in a filing on Jan. 22.
Its discontinuation of the light commercial vehicle e-mobility activity will bring charges of $36 million to $41 million, with $33 million to $38 million for inventory write-offs and non-cancelable purchase orders.
“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 in a statement.
The renewable energy firm trimmed its fourth-quarter revenue expectations in November on weak demand for its solar inverters.
Growth for solar in Europe has slowed in the last year due to excess inventories and weakening demand. In the United States, higher interest rates and a metering reform in California, the country’s largest solar market, have led to lower demand for solar.
Shares of the company were up 2.5% in trading before the bell on Monday.
(Reporting by Harshita Meenaktshi and Seher Dareen in Bengaluru; Editing by Deepa Babington, Lisa Shumaker and Devika Syamnath)
