Renewable energy firm SolarEdge announced on Monday a restructuring to increase efficiency cutting some 400 jobs, 200 in Israel, leaving a workforce of 4,200 employees world wide.
This is the second round of layoffs for SolarEdge this year, following the termination of about 900 employees in January, which then constituted 16% of its total staff.
These layoffs are part of a challenging year for SolarEdge, which has been grappling with a crisis sparked by two major factors. The first is the rising interest rates in the US, which have undermined the economic feasibility of rooftop solar installations. The second is the accumulation of the company's product inventory in European warehouses, following a surge in orders at the onset of the Ukraine war. Since the beginning of the year, SolarEdge's stock has plummeted by 66.2% on the NASDAQ, and it has nosedived by 88.9% over the past 12 months.
SolarEdge produces a variety of products primarily for the home market, including inverters that optimize the utilization of electricity generated by solar panels. The company was founded in 2006 by five former intelligence officers: Guy Sella, Lior Handelsman, Yoav Galin, Meir Adest, and Amir Fishelov. In 2015, SolarEdge was listed on NASDAQ with a valuation of $704 million, and in 2021, it made history by joining the S&P 500 index, becoming the first and so far only Israeli company to do so. However, in December 2023, amid weak results, the company was removed from the index.
Last week, SolarEdge announced the resignation of CFO Ronen Faier, after 14 years in the role. Faier, who will continue in his role for the next three months, will be succeeded by Ariel Porat, who currently serves as the Europe manager at Siemens.