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Key Takeaways
- SolarEdge Technologies, an Israel-based company that develops energy technology, said it will lay off 400 employees.
- The company’s CEO pointed to a buildup of inventory and a solar industry downturn in Europe.
- SolarEdge shares dropped in intraday trading Monday, and are down about 70% year-to-date.
SolarEdge Technologies ( SEDG ) is cutting 400 employees from its workforce thanks to an inventory backlog and declining revenue , according to a Securities and Exchange Commission (SEC ) filing Monday.
Half the job cuts will occur in Israel, where the company is based. The company had 5,633 employees as of Dec. 31, 2023.
In a letter to employees, Chief Executive Officer (CEO ) Zvi Lando cited “an accumulation of excess inventory,” adding that solar installation rates are rising slower than expected in Europe.
Comparatively, Lando expressed more optimism about North America.
North America Showing ‘Slight Growth’ for SolarEdge
“In North America, we are beginning to see some slight growth in installation rates, and we continue to ramp up our U.S. manufacturing capacity,” Lando said. “This is a major opportunity both for SolarEdge and for our customers.”
SolarEdge stock slumped 15% to $26.90 as of 1:53 p.m. ET Monday, and is down more than 70% so far in 2024.
A chunk of that decline came late last month after SolarEdge announced that one of its customers had filed for Chapter 7 bankruptcy and likely wouldn’t be able to pay its multimillion-dollar debt.