Bay Area solar company to cut 350 jobs

Enphase Energy announced late Monday it intends to implement a restructuring plan early next year, resulting in a 10% reduction of its global workforce.

The Fremont-based company, which makes equipment for solar panels to convert direct current from sunlight into power for grids, revealed in regulatory filings that the cuts will impact approximately 350 employees and contractors.

Enphase’s restructuring efforts will also include a reduction in its real estate footprint worldwide, consolidation of its facilities, and the extension of a hiring and travel freeze through 2024.

In a memo to employees announcing the layoffs, CEO Badri Kothandarama said, “Over the last few months, we have made significant efforts to reduce our operating costs, but we have more work to do to right-size our operations and become leaner and more efficient.”

The company’s stock has declined 53% since the beginning of the year, primarily due to a drop in demand for its microinverters. Kothandarama pointed to metering reform in California, the largest solar power market in the country, and elevated lending rates as contributing factors to the financial challenges.

“Over the last 12 months, the solar market has experienced significant turbulence worldwide,” Kothandarama said.

“In the United States, high interest rates have resulted in a substantial decrease in consumer demand, while California’s NEM 3.0 transition continues to introduce further uncertainty. Despite considerable growth in Europe until mid-2023, demand slowed, and highinterest rates led to elevated inventory levels.”

Enphase will cease operations at its plants in Wisconsin and Romania as part of the restructuring plan.

It will also reduce its global capacity from 10 million units per quarter to approximately 7.25 million units per quarter.

The company anticipates that the restructuring will incur costs of approximately $16 million to $18 million, with the majority of charges expected in the fourth quarter of 2023.

The restructuring is slated for completion in the first half of the new year.