Fronius, an Austrian company known for its inverters, storage systems, welding equipment, and battery charging technology, has faced significant challenges due to high inventory levels and a stabilizing photovoltaic market. In June and July alone, the company laid off 1,000 employees, including staff in Germany.
Despite a record year for photovoltaics in 2023, with increases of 2.6 gigawatts in Austria, 56 gigawatts in Europe, and nearly 450 gigawatts globally, the anticipated market growth has yet to materialize. Many companies, including Fronius, had ramped up capacities and hired in anticipation of continued exponential growth.
At the end of 2022, Fronius began to doubt its optimistic market projections due to order cancellations. The company implemented short-term internal work for about 1,300 photovoltaic production employees, assuming storage capacities would clear by mid-2023. However, this did not happen, and the company had to revise its forecast continuously. As a result, 350 employees were laid off in early June.
Further market analysis and discussions at Intersolar revealed a lower-than-expected order volume for 2024, leading to an additional 650 layoffs, including 450 in Austria and 200 in subsidiaries in the Czech Republic and Germany. Fronius plans to end short-term internal work by September and shift from three to two-shift operations to utilize the remaining employees, particularly in production. The company also intends to reduce investments and material expenses.
These layoffs represent about half of the employees Fronius hired in response to the natural gas and energy crisis. CEO Elisabeth Engelbrechtsmüller-Strauß stated that the downsizing was "necessary and unavoidable" but expressed optimism about the future. She highlighted that Fronius has increased its market share in critical markets like Austria and Germany and maintained it in Switzerland and Australia. Despite the challenges, Fronius remains financially independent and diversified, with additional business units in welding and battery charging technology providing stability and security.
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