SolarEdge (NASDAQ:SEDG) layoffs are a hot topic on Monday as the solar energy company announces plans to cut 400 jobs.
SolarEdge notes that 200 of these layoffs will take place in Israel. The company also mentions that these job cuts affect all departments. It also notes that it will reduce discretionary spending.
SolarEdge says the reason for the job cuts is reduced demand for its solar power products. The company points out that demand in Europe is slowing consideringly and is a major factor behind the headcount reductions.
SolarEdge CEO Zivi Lando said the following about the layoffs:
“The downturn of the market at the end of 2023 and beginning of 2024 had led to an accumulation of excess inventory in our distribution channels. We know that as inventory channels clear, our sales volumes are lower than the rate of installations and that this clearing process will take time.”
SolarEdge Layoffs Come After Weak Earnings
The last time SolarEdge reported earnings it included a net loss of $157 million. That’s worth noting, as it was its third quarterly net loss in a row.
Investors will also remember that the company revealed plans to cut roughly 16% of its workforce back in January. Its end-of-2023 filing showed a total employee headcount of 5,633.
SEDG stock is down 13.4% as of Monday morning with more than 2.5 million shares traded. That’s closing in on its daily average trading volume of about 3.7 million shares.
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On the date of publication, William White did not have (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
