Enphase Energy to Lay Off 500 Employees in Response to Challenging Solar Market

Enphase Energy Inc., a US-based maker of solar microinverters and battery systems, has announced a restructuring plan to address ongoing market challenges, including job cuts and relocating certain functions to more cost-effective regions.

The company will reduce its global workforce by 17%, impacting approximately 500 employees and contractors. Enphase plans to focus its contract manufacturing in four existing locations: two in the US, one in India, and one in China, while ending operations in Guadalajara, Mexico.

Despite the changes, Enphase’s microinverter production capacity will remain at 7.25 million units per quarter, with 5 million units produced in the US.

The restructuring plan is expected to result in charges between USD 17 million and USD 20 million, primarily in Q4 2024.

CEO Badri Kothandaraman cited tough market conditions, including reduced demand in the US due to high interest rates and changing policies in Europe, contributing to cash flow issues for many solar equipment companies. The company is also aiming to reduce its quarterly non-GAAP operating expenses from USD 80-85 million to USD 75-80 million, with the goal of achieving this by the end of Q1 2025.