(Bloomberg) -- SolarEdge Technologies Inc. is firing about 12% of its staff and closing its energy-storage unit amid a slump in the US market that prompted the manufacturer to take a $1 billion writedown this month.
The Israel-based company, which makes components for solar-power system, is eliminating about 500 jobs, mostly in South Korea, according to a filing Wednesday. The producer also plans to sell assets related to its storage operation.
SolarEdge’s struggles reflect a broader downturn in the US sector as high interest rates make residential power more expensive for consumers, dragging down sales. The company said this month that inventory was piling up in warehouses, and it warned that margins would be non-existent or even negative. Rival Enphase Energy Inc. recently fired about 17% of its staff, citing reduced demand.
By pivoting away from storage, SolarEdge said it plans to refocus on its core solar business.
SolarEdge “continues to make difficult, but essential, choices in an effort to return to stable financial footing,” analysts at Oppenheimer & Co. led by Colin Rusch wrote in a research note Wednesday.
The shares gained as much as 10% in New York and pared their year-to-date loss to about 84%.
Solar Edge expects to take a pre-tax charge of $81 million to $99 million.
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