SolarEdge, the solar energy tech firm based in Israel, is preparing for another round of layoffs. This will be the fourth round of job cuts in the last one year.
In January of 2024, SolarEdge had let go about 900 members of its workforce. Then, in July, it laid off about 400 more. The third round of job cuts rendered 500 employees jobless in South Korea and saw its energy storage division being closed down for good.
The number of employees that are likely to be impacted in the upcoming round is yet to be officially revealed.
The demand for SolarEdge products has dropped significantly in the US due to high interest rates making it financially impractical to set up solar panels atop houses.
On the other hand, in Europe, initially, the Ukraine war had led to an increase in demand for solar energy and related products. Restricted import of natural gas from Russia had led to an increase in demand for alternative energy sources. Now that the prices of energy and gas have more or less become stable, SolarEdge is stuck with excess inventory.
The company has adopted several cost-cutting measures recently, which should help the overall situation. However, only a reduction in interest rates and an increase in electricity prices can help the company recover substantially from this financial crisis in the longer term.
The company has presence in India too. The SolarEdge India office established its operations in 2017, offering advanced inverter solutions for residential, commercial and utility-scale photovoltaic (PV) projects.
