SolarEdge Technologies, Inc. (NASDAQ:SEDG) shares are trading lower after the company disclosed a decision to lay off 400 employees.
The company stated that 200 of these job cuts are in Israel. The action involves reducing headcount and discretionary spending across all departments.
The company stated that the market downturn at the end of 2023 and early 2024 led to excess inventory in their distribution channels, temporarily lowering sales volumes as inventory clears.
In January this year, the company disclosed trimming 16% of the workforce to lower operating expenses and align its cost structure to current market dynamics.
SolarEdge’s business is further impacted by the slower-than-expected growth in Europe’s solar industry, which has created significant uncertainty and variability in PV installation rates across different countries.
In North America, the company said it is beginning to see some slight growth in installation rates.
Last week, the company announced significant milestones in its U.S. manufacturing strategy, spurred by incentives from the 2022 Inflation Reduction Act (IRA).
SolarEdge said that it has created approximately 1,500 new jobs at its Texas and Florida manufacturing facilities, with the expectation to increase this number to around 1,750 by the end of 2024.
Also Read: SolarEdge’s Q1 Results Cast Shadow With Revenue Decline, But CEO Remains Optimistic
Investors can gain exposure to the stock via Invesco Solar ETF (NYSE:TAN) and Global X Solar ETF (NASDAQ:RAYS).
Price Action: SEDG shares are down 11.1% at $28.14 at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Andreas from Pixabay
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