Tom Werner, president of SunPower, today… letter to employees that announces layoffs and division closures.
To achieve financial viability, SunPower will transition to a low fixed cost model that should be more responsive to market fluctuations. The company will phase out its SunPower Residential Installation (SPRI) locations and discontinue sales of SunPower Direct. SunPower will reduce its workforce by approximately 1,000 people in the coming weeks – likely close to 20-25% of SunPower’s workforce. The company reported that it had 4,710 full-time employees as of January 1, 2023, while Reuters reports that the company recently had 3,800 employees. Those affected by the layoffs should have been contacted today.
“After a short transition period, all pipeline operations from pre-installation through system activation will be handled by Blue Raven Solar, full-service installation partners and our trusted network of SunPower certified dealers – all who meet our standards of integrity , design, quality and customer service,” said Werner. “As we make this transition over the next month, we are committed to treating our customer experience with the highest care and with minimal impact to timelines.”
SunPower will now focus its efforts on its dealer network and installation partners. The company also plans to continue its activities in new residential construction.
SunPower has had a rocky road since diversifying its businesses at the start of this decade. The company sold its large-scale O&M portfolio to NovaSource in May 2020, spun off its solar panel manufacturing business to Maxeon in August 2020, acquired Blue Raven Solar in October 2021 to refocus its residential efforts, and sold its commercial installation division to TotalEnergies in February. 2022 and just lost its exclusive solar panel supply agreement with Maxeon last month.
Company unveiled this week that the company has identified misstatements in its fiscal 2022 results and expects a $15 million to $25 million decline in earnings from continuing operations before income taxes and other adjustments for the year ended January 1, 2023. Among the reasons for the misstatements include sales commissions incorrectly classified as costs of revenue.
