(Reuters) – SunPower said on Wednesday it plans to cut jobs and close some business units as part of a restructuring aimed at cutting costs, sending the solar power company's stock in volatile trading. It rose 3.5%.
The development comes a day after the company revealed it had identified misstatements in its 2022 financial results.
SunPower announced Wednesday that it will reduce its workforce by approximately 1,000 employees in the coming days and weeks, as well as reduce SunPower residential installations and end SunPower direct sales.
The company, which had 4,710 full-time employees worldwide as of January 1, 2023, expects to incur costs of approximately $28 million related to severance benefits, early termination of contracts and certain amortizations. There is.
SunPower cited a slower-than-expected recovery in demand across the market as the reason for its decision and said it would move to a lower fixed-cost model to withstand market fluctuations.
Companies that provide solar power and energy storage solutions are seeing rising inventory levels and California's metering reforms weigh on demand. Metering reform reduced the rates residential customers receive from the grid, reducing demand for solar PV installations.
SunPower's restructuring plan is expected to be completed by the second quarter.
In a letter to employees, Tom Warner, SunPower's chief operating officer, said the company will take steps to simplify its business structure, move away from areas where it has not been able to maintain profitable operations, and improve financial management. He said he was taking lessons.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shaunak Dasgupta)
