SolarEdge Technologies plans to lay off 400 employees worldwide, its fourth job cuts announcement in the past year. Recent safe harbor agreements and 45X credit sales could help the company on the road to recovery.
SolarEdge Technologies plans to lay off 400 employees worldwide, its fourth job cuts announcement in the past year. For example, last January the company announced a global workforce reduction plan that will impact approximately 900 employees, or about 16% of its total workforce.
The company said the reduction is part of a restructuring plan “designed to reduce operating costs and align the cost structure with current market dynamics.” It said it will provide more details in its upcoming year-end earnings release.
With the recent layoffs, the company expects to save approximately $9 million to $11 million as a result of the actions. as reported by Reuters. SolarEdge (NASDAQ GS: SEDG) stock is trading 18% higher today.
The layoffs follow a period of instability, including 64% drop in sales in the third quarter of 2024 compared to the same period in 2023.
In November 2024, the company announced that this would happen close and sell its energy storage activities and assets, requiring a further 12% workforce reduction, particularly affecting South Korea as the country seeks to restructure its operations.
“The decision to close our Energy Storage division was the result of a thoughtful analysis of our portfolio of businesses and product lines, industry trends and the competitive environment,” said Faier.
In other news, SolarEdge announced safe harbor agreements with Sunrun, as well as a financier of residential solar installations. Under the agreements, SolarEdge will supply inverters, power optimizers and batteries manufactured at its facilities in the United States, which, when combined with other U.S.-made equipment, is expected to enable its partners to qualify for domestic tax credits contents. Deliveries under the Safe Harbor agreements are expected to occur throughout 2025.
SolarEdge also announced that last month, using the Crux platform, it completed its second transaction for the sale of §45X Advanced Manufacturing Production Tax Credits. The transaction includes a portion of the credits generated in the third quarter of 2024 and supported by both US-manufactured Inverters and US-manufactured Power Optimizers, making them eligible for the 11c/w Advanced Manufacturing Production Credit.
“The Safe Harbor agreements announced today and the 45X credit sale are important milestones on our recovery path,” said Shuki Nir, CEO of SolarEdge. “They improve visibility into our business prospects and we believe they will improve our cash position. strengthen our balance sheet and further advance our priority of financial stability. I look forward to sharing further updates on our progress in the coming quarters.”
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