Enphase Energy (Nasdaq: ENPH) said in a statement to the US Securities and Exchange Commission (SEC) that it will lay off 17% of its global workforce to “streamline its operations.”
The layoffs, which must be completed by the end of Q1 2025, will affect approximately 500 employees and contractors.
The Fremont, California-headquartered global energy technology company and supplier of microinverter-based solar and battery systems also said it will shut down contract manufacturing operations in Guadalajara, Mexico, but continue contract manufacturing in the US, India, and China.
The company says its global capacity for microinverters will remain steady at approximately 7.25 million microinverter units per quarter, of which approximately 5 million units of capacity are in the US.
The company writes in its SEC statement:
The Company estimates that it will incur approximately $17 million to $20 million in restructuring and asset impairment charges, of which approximately $14 million are expected to be incurred in the fourth quarter of 2024, and approximately $11 million to $12 million will be total cash expenditures.
The estimated impact of charges related to the Plan is expected to be approximately $10 million to $13 million in employee severance and benefits, $4 million in asset impairment charges, and $3 million related to contract manufacturing and office closures.
CEO Badri Kothandaraman said in a message to employees a regulatory filing [via Reuters], “A combination of factors – including reduced US residential solar demand due to high interest rates and declining demand in Europe due to policy changes and utility rate adjustments – has contributed to sustained unpredictability in our industry.”
Read more: Enphase Energy’s Level 2 home EV chargers now come with NACS connectors
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