Enphase Energy Slashes Jobs and Makes Other Cuts in a 'Challenging' Environment

Enphase Energy Inc. (ENPH) is slashing jobs as the maker of solar power equipment said it was dealing with a "challenging macroeconomic environment.”

In a regulatory filing Monday, Chief Executive Officer (CEO) Badri Kothandaraman said Enphase is laying off 350 contractors and employees, or 10% of its workforce. In addition, the company said it is “streamlining our operations” by ending contract manufacturing in Wisconsin and Timisoara, Romania. The CEO said Enphase will continue its hiring and travel freeze through next year, and “cut discretionary spending on several other fronts.”

Kothandaraman said the solar market has seen “a lot of turbulence” over the past year. High interest rates have led to a significant decline in consumer demand for solar products, he said. The industry also has been rocked by a law change in California, the biggest U.S. solar market, that lowered the compensation homeowners get for feeding electricity back to the grid, he said. 

While the company has made significant efforts to reduce operating costs over the last few months, “we have more work to do to right-size our operations and become leaner and more efficient,” Kothandaraman said.

He added that the layoffs and other cost-cutting measures will result in one-time restructuring and asset impairment charges of approximately $16 million to $18 million.

Employees losing their jobs in the U.S. will remain on the payroll until Jan. 5, while those outside the U.S. will follow separate processes in line with the countries they are in, the company disclosed.

Shares of Enphase Energy rose more than 7% Tuesday, although they remain down about 50% for the year.