Renewable energy company SolarEdge has announced the dismissal of 400 employees worldwide as part of its efforts to reduce operational costs, following a significant crisis triggered by declining sales and surplus inventory of its products in Europe. According to the report initially revealed by Calcalist, half of the layoffs will occur in Israel.
This planned wave of layoffs marks the fourth round of cuts in the company since January of last year and the first under the leadership of the newly appointed CEO, Shuki Nir, who took office in December. Currently, SolarEdge employs 3,700 workers, but after the layoffs, the workforce is expected to shrink to 3,300 employees.
In a letter to employees, CEO Shuki Nir wrote: "The cuts will affect all departments in the company, both within our headquarters and across regional teams. They will impact people who have made important contributions to SolarEdge over the years, bringing expertise and depth to their fields. We understand the significance and impact of these measures on the affected employees and their families. We carefully consider each case and are committed to handling each situation with fairness and respect."
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SolarEdge is grappling with severe crises in its two primary markets. In the United States, high interest rates have made rooftop solar installations less feasible, reducing demand for the company’s products.
Meanwhile, in Europe, the company is dealing with an inventory surplus. This crisis emerged following the outbreak of the war in Ukraine and the subsequent restrictions on importing natural gas from Russia. In response, Europe sought alternative energy solutions and purchased large quantities of various products. However, as energy and gas prices have since stabilized, Europe is now left with excess inventory of SolarEdge products.