SunPower, a well-known photovoltaic company in the United States, will lay off more than 25% of its workforce to cope with the long-term downturn in its rooftop solar business.
On Wednesday, April 24th local time, a SunPower spokesperson announced that the company will lay off approximately 1000 jobs out of a total of approximately 3800 employees. CEO Tom Werner also posted an employee letter on the official website, confirming this news.
Werner wrote, "I am writing this letter to share with you this difficult news that we will be implementing a transformation throughout the organization in the coming days or weeks. We need to achieve financial feasibility, including simplifying business structures, transitioning from areas where profitable operations cannot be sustained, and improving financial controls."
"Specifically, we will gradually close offices in the residential installation department and close direct sales operations. We also plan to reduce our workforce to better align our business with new priorities. To achieve this transformation, we will reduce approximately 1000 employees in the coming days and weeks."
According to documents, SunPower is expected to incur approximately $28 million in restructuring expenses. Werner pointed out that although the company has been working hard to avoid this outcome, the market's recovery rate is slower than previously expected. SunPower's stock price rose by over 6% during the day and closed down by over 1%.
Since the beginning of the year, SunPower has fallen nearly 60%, and it should be pointed out that this is still recorded on the basis of a 73% decline in 2023. Earlier this year, the company changed its senior management and announced a delay in submitting Form 10-K.
In recent years, the rooftop solar industry in the United States has been in a quagmire as high interest rates have pushed up the installation costs of solar panels and reduced potential consumer interest. In addition, California, the largest solar market in the United States, has reduced the rewards for households and businesses delivering excess solar power to the grid, causing a significant blow to the industry.
But there is also good news. Earlier this week, US President Biden announced that he will provide $7 billion in funding for rooftop solar projects to help over 900000 households in low - and middle-income communities install rooftop solar equipment.