Israeli solar energy company SolarEdge Technologies (Nasdaq: SEDG) will lay off 900 employees, including 550 in Israel, the company announced. This represents approximately 16% of the company’s workforce and follows weak financial results and a decline in the company’s share price. Most of the layoffs in Israel are taking place at the company’s headquarters in Herzliya and the rest at the offices in Tziporit Park near Nof Hagalil.
At the end of 2022, SolarEdge reported that it had 5,000 employees, including 2,700 in Israel, but this number increased in 2023 and, according to the company’s website, it has 5,814 employees. Considering that two months ago, SolarEdge CEO Zvi Lando told « Globes » that more than 350 employees, or 11% of the workforce in Israel, were serving in the reserves of the army, the company probably has more than 3,100 employees in Israel.
SolarEdge develops and markets solutions for the solar energy industry, including inverters, optimizers, batteries and communications devices for monitoring solar energy systems.
In the past, SolarEdge was the most valuable Israeli company on Wall Street, with a market capitalization of almost $20 billion at its peak, but it currently trades with a market capitalization of just $3.9 billion. The company’s stock price fell 67% in 2023 and since the start of 2024 it has fallen another 26%. SolarEdge’s stock price hit a four-year low last week. In 2023, the company’s stock was relegated from the S&P 500, on which it had been listed since 2021.
The fall in SolarEdge’s stock price is due to weakness in the solar energy market in which the company operates. The company issued a profit warning ahead of its third-quarter 2023 results and gave weak guidance for the fourth quarter.
Lando said: “The decision we made was very difficult but necessary in order to adjust our cost structure to the rapidly changing market situation. We are making major efforts to treat our departing colleagues with the respect they deserve, particularly in these complex times we are going through. in, express our gratitude for their contribution and support them during the transition period. Even now, we are confident in the continued growth of the renewable energy market in the long term and in our leading position in this area. The current changes will not affect the company’s vision and strategic direction. We are committed to continuing to lead the renewable energy revolution, supporting our customers and providing them with innovative and cutting-edge technology in the field. . »
Published by Globes, Israel Business News – fr.globes.co.il – January 21, 2024.
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