SolarEdge Technologies, a provider of DC-optimized inverter systems, announced a restructuring plan to reduce operating costs that includes laying off 16% of its global workforce, or about 900 employees.
Approximately 500 of the affected employees work at the company’s manufacturing sites. This move follows SolarEdge’s discontinuation of manufacturing in Mexico, reduction of manufacturing capacity in China, and termination of its light commercial vehicle e-mobility activity.
In an SEC filing, SolarEdge said it expects to record aggregate pre-tax restructuring and asset-related charges of $59 million to $66 million in connection to the layoffs, and $36 million to $41 million in connection with the discontinuation of its light commercial vehicle e-mobility activity. It also expects to pay $53 million to $58 million for the payment of severance and related benefits, asset-related and impairment charges, and manufacturing capacity reduction costs.
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“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,” said Zvi Lando, Chief Executive Officer of SolarEdge.
“We are making every effort to treat our departing colleagues with respect and gratitude for their contributions and support them in their transition,” Lando added. “We remain confident in the long-term growth of the solar energy market and our leading position in the smart energy space. These changes do not impact our strategic direction and priorities and we remain committed to continue to drive the renewable energy transformation, while providing best-in-class technology and support to our customers.”