Enphase Energy unveiled a restructuring plan on Friday, addressing difficult market conditions by reducing its workforce and streamlining operations.
The plan will impact approximately 500 employees and contractors, representing 17% of the company's global workforce. The restructuring will also involve relocating certain functions to cost-efficient regions.
The company will focus its contract manufacturing on four locations: two in the U.S., one in India, and one in China, while halting operations in Guadalajara, Mexico. Despite these changes, Enphase's microinverter production capacity will remain at 7.25 million units per quarter, with about 5 million units produced in the U.S.
Enphase expects to incur restructuring and asset impairment charges of USD 17 million to USD 20 million, primarily in Q4 2024.
CEO Badri Kothandaraman cited ongoing challenges in the solar industry, including reduced demand in the U.S. and Europe, and cash flow issues faced by many solar equipment companies and installers.
To mitigate costs, the company aims to lower its non-GAAP operating expenses from USD 80-85 million per quarter to USD 75-80 million, with the goal of completing the restructuring actions by the end of Q1 2025.
