(Bloomberg) -- Solar equipment maker Enphase Energy Inc. is cutting 500 employees and contractors in a restructuring amid lower demand in the US and Europe.
The cuts represent about 17% of the workforce, according to a filing Friday. The company said it plans to stop contract manufacturing in Mexico.
Enphase’s restructuring follows shifting solar demand that has whiplashed the industry. The California-based company missed its earnings estimates for the three months through September due to weak European demand and forecast disappointing revenue for the fourth quarter.
“A combination of factors — including reduced US residential solar demand due to high interest rates and declining demand in Europe due to policy changes and utility rate adjustments — has contributed to sustained unpredictability in our industry,” Chief Executive Officer Badri Kothandaraman wrote in a letter to employees.
Enphase said it will incur approximately $17 million to $20 million in restructuring and impairment charges. It plans to refocus operations on locations in the US, India and China, expecting to keep its global capacity for microinverters at about 7.25 million units per quarter. About 5 million units of that capacity is in the US.
Shares, which have almost halved this year, were little changed in late trading on Friday.
--With assistance from Mark Chediak.
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