SunPower Corporation (NASDAQ:SPWR) is cutting back by reducing its workforce by 25%.
The company’s layoffs will result in 2,500 employees at the solar company to lose their jobs. The move follows an ongoing trend that has seen solar companies cut back due to a decline in the prices of solar panels.
Additionally, SunPower Corporation is closing one plant as part of its cutback efforts. This particular plant is a 700-megawatt solar cell fabrication facily in the Philippines called Fab 2.
The average selling price of the company’s products fell a whopping 25% during the company’s third quarter. Restructuring charges will amount to at least $150 million on a GAAP basis for the company’s current quarter, while charges will tally up to almost $275 million through the end of next year.
For 2017, SunPower Corporation expects to rake in $2.10 billion to $2.60 billion in revenue, which is lower than the consensus estimate of $2.70 billion, based on analysts polled by Thomson Reuters.
The company says that it expects to have a positive cash flow from operations through the next fiscal year, ending the year with nearly $300 million in cash.
The solar energy market grew in 2016 because prices for solar panels declined. Experts predict that the market will continue surging throughout 17.
Panel materials and solar power system hardware are expected to continue their slump throughout next year. New solar power generation systems are expected to arrive in 2017.
SPWR share grew 14.8% Wednesday.
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