SolarEdge Technologies (SEDG, Financial), a leading photovoltaic inverter manufacturer, announced plans to shut down its energy storage division and reduce its workforce by approximately 12%. This decision comes amid declining electricity prices and increased competition from Chinese rivals, resulting in weakened demand for residential solar solutions in Europe.
In the United States, the Israeli company faces fierce competition from firms like Enphase Energy and Tesla in the energy storage market. The layoffs will affect nearly 500 employees, primarily in manufacturing roles in South Korea. Earlier this year, SolarEdge had already reduced its workforce by about 1,300 employees due to challenging market conditions.
As of December 31, 2023, SolarEdge employed 5,633 people, with 725 based in South Korea. The company aims to complete this latest round of layoffs in the first half of next year. It plans to record pre-tax termination and asset-related charges totaling between $81 million and $99 million in the fourth quarter of 2024 and the first quarter of 2025.
SolarEdge intends to focus more on its core solar business and aims to offset the costs by selling assets from its energy storage division, including manufacturing facilities in South Korea.
