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Enphase Energy to cut 10% of global workforce
The changes are being made to get their operating expenses down and closer to Enphase’s financial operating model
Company logo / X/@Enphase
Enphase Energy, a California-based global energy management technology company led by Indian-origin president and CEO,Badri Kothandaraman, announced its plans to cut 10 percent of its global workforce as part of its restructuring process.
In a message to all employees, the CEO said the changes will affect “approximately 350 contractors and employees” and that manufacturing operations in two locations – Timisoara, Romania and Wisconsin, U.S. – will cease, while other contract manufacturing sites will be resized.
The company decided to resize due to the volatility of the solar market worldwide. A drop in consumer demand due to high interest rates in the U.S., and slow demand in Europe leading to heightened interest rates and high inventory levels caused Enphase’s topline revenue to decrease. The changes are being made to get their operating expenses down and closer to Enphase’s financial operating model.
Kothandaraman took responsibility for the decision and what led to it. “I take full accountability for these decisions and how we got here. I understand this is difficult for all of us, especially when it impacts our valued colleagues and friends who are departing,” he wrote in the message.
For the U.S. employees who are being laid off, Enphase will pay them till the last working day which is January 5, 2024, severance packages will include cash and vesting of certain restricted stock units, continued health-care benefits until the end of the month of the last working day, allowing employees to use company time to interview at other places, etc.
For those outside the U.S., Enphase will follow separate practices, in line with local practices and employment laws, according to the statement. “The company is reducing spending in every department by reducing headcount, non-people related expenditures, or both. The layoff is not a reflection of employee performance but is a necessary, undesirable action,” the statement continued.
Kothandaraman also included a message for those who the company has decided to retain. “Our focus in the first half of 2024 will be on clearing the excess inventory in the channel worldwide. However, we see that there is greater confidence in the U.S. Federal Reserve cutting the interest rate next year, and we hope this leads to growth in the back half of the year.”
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