The US-based company announced plans to phase out its residential solar installation sites and close its direct sales unit.
SunPower, a provider of residential solar, energy storage and EV charging, has announced it will close business segments as it restructures to reduce costs.
The company’s shares are currently trading 96% lower than ever and are down 86% in the past year. SunPower’s revenues reported last December reflected a 28% year-over-year decline, while operating expenses increased and net income resulted in a loss of $123.9 million.
The battle reflects a market-wide retreat from the residential solar market, which has been buffeted by a deteriorating economy due to high interest rates and unfavorable policy and interest rate changes.
Prior to the job cuts, the company employed 3,800 people in full-time positions, including employees at Blue Raven Solar. It announced in a press release today that it would cut 1,000 jobs as part of the restructuring.
SunPower has announced plans to phase out its residential solar installation sites and close its direct sales unit.
“While we have worked hard to prevent this outcome, the market is recovering more slowly than we initially expected,” said Tom Werner, CEO. “In addition, we have dedicated resources to improve our financial controls, and we will continue to do so. We believe this change in our strategy is necessary to secure the future of the company.”
After a short transition period, all project pipeline work from pre-installation through system activation will now be performed by Blue Raven Solar and other installation partners and SunPower certified dealers.
“Going forward, SunPower will focus our efforts on serving our best dealer network and installation partners,” said Werner. “We plan to continue investing in our New Homes business, which continues to grow. We will still manage ongoing customer service needs, including operations and maintenance (O&M), and will continue to honor our Complete Confidence Guarantee.”
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