SMA Solar Technology AG, a German manufacturer of photovoltaic (PV) and battery inverters, announced on Wednesday a significant restructuring initiative aimed at achieving cost savings of up to EUR 200 million (USD 222.9 million).
This transformation program comes in response to a “persistently challenging market environment” and may involve a reduction in the company's workforce. The objective is to improve profitability and streamline operations, with expected cost savings ranging from EUR 150 million to EUR 200 million.
CEO Jürgen Reinert commented, “With the restructuring and transformation programme that has now been initiated, we will stabilise SMA Solar financially in the short term on the one hand and realign the medium and long-term business strategy on the other.”
In addition to cost-cutting measures, SMA Solar plans to adjust its organizational and operational structure to better position itself in the market. CFO Barbara Gregor emphasized that a major focus of the initiative will be to enhance the company's financial stability.
In August, SMA Solar reported a net profit of EUR 44.1 million for the first half of 2024, down from EUR 103.5 million during the same period last year, as sales fell due to high inventories among distributors and installers. This market volatility prompted the company to lower its full-year guidance.
