SolarEdge to cut 400 jobs in fourth wave of layoffs in past year
SolarEdge to cut 400 jobs in fourth wave of layoffs in past year
The renewable energy firm is struggling with declining demand in the US and excess inventory in Europe as new CEO Shuki Nir leads restructuring efforts.
The renewable energy company SolarEdge has announced the layoffs of 400 employees worldwide, as revealed by Calcalist, as part of its efforts to reduce operating costs following a deep crisis caused by declining sales and excess inventory. Half of those laid off will be in Israel.
This marks the company’s fourth wave of layoffs since January of last year and the first under new CEO Shuki Nir, who was appointed in December. SolarEdge currently employs 3,700 people, and after this wave of layoffs, the workforce is expected to shrink to 3,300 employees. SolarEdge employed around 5,500 people before the first wave of layoffs last January.
In a letter to employees, Nir wrote: "The cuts will affect all departments in the company, both at our headquarters and within our regional teams. These measures will impact people who have made significant contributions to the company over the years, bringing expertise and depth to their fields. We understand the gravity of this decision and its impact on affected employees and their families. Each case has been carefully considered, and we are committed to handling this process with fairness and respect."
In 2024, SolarEdge conducted three waves of layoffs, reducing its workforce to 3,700 employees. The first wave, in January 2024, followed a sharp decline in the company’s stock and a drop in sales. It saw the termination of 900 employees, about 16% of the workforce. The second wave came in July, with 400 additional employees let go. The third wave occurred in November, when SolarEdge shuttered its energy storage division, resulting in the termination of 500 employees in South Korea.
SolarEdge is grappling with a severe crisis in its two main markets. In the United States, high interest rates have reduced the economic viability of installing solar systems on rooftops, leading to decreased demand for the company’s products.
In Europe, the company is struggling with an inventory surplus. The crisis began with the outbreak of the war in Ukraine and subsequent restrictions on importing natural gas from Russia. In response, European countries sought alternatives, purchasing large quantities of solar-related products. However, energy and gas prices have since stabilized, leaving an overstock of SolarEdge's products in the European market.
