Enphase Energy (NASDAQ:ENPH) layoffs are in the news Tuesday as the home energy solutions company prepares for major job cuts.
Enphase Energy confirmed in a filing with the U.S. Securities and Exchange Commission (SEC) that it will be cutting roughly 10% of its workforce. This is part of its restructuring plan to increase operational efficiencies while reducing cost to meet current market conditions.
Enphase says that these layoffs will affect its global workforce and are made up of both contractors and employees. This will also see it cease operations at its contractor facilities in Romania and Wisconsin.
Enphase Energy notes that these actions will result in $16 million to $18 million in restructuring and asset impairment charges. It estimates that $7 million of this will be in cash expenditures. The company also says that it should see roughly $15 million of these charges in the fourth quarter of 2023.
What’s Behind the Enphase Energy Layoffs?
Enphase Energy is laying off employees after a rough year for the solar panel market. Lackluster demand for the products has resulted in the Invesco Solar ETF (NYSEARCA:TAN) falling nearly 30% since the start of the year.
As for ENPH stock, the company’s shares are up 2.8% as of Tuesday morning on the layoffs news. However, shares were down 51% year-to-date (YTD) when markets closed yesterday.
Investors looking for more of the hottest stock market news today will want to keep reading!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
