“Israeli photovoltaic inverter manufacturer SolarEdge Technologies announced on January 21st that it plans to lay off approximately 16% of its workforce worldwide to reduce operating costs.
This involves about 900 employees, and prior to this, the company had suspended production in Mexico, reduced production capacity in China, and terminated its lightweight commercial electric vehicle business. SolarEdge’s CEO Zvi Lando stated in a statement, ‘We have made a difficult but necessary decision to implement layoffs and other cost-cutting measures to adapt our cost structure to the changing market dynamics.’ The renewable energy company is facing challenges from weak demand for solar inverters, which led to a downgraded revenue guidance for the fourth quarter in November.
Last year, the solar market in Europe grew at a slow pace, with oversupply and weak demand being the main issues. In the United States, one of the largest solar markets, California has seen a decline in solar demand due to high interest rates and metering reforms.
To address this market situation, SolarEdge is actively seeking to adjust its strategy by reducing costs through layoffs and enhancing competitiveness. This move will help the company survive in the fierce market competition and prepare for future growth.”