Enphase Energy To Slash Workforce By 10% In Global Restructuring Plan: Details

Enphase Energy Inc ENPH has announced a reduction of its global workforce by approximately 10%, impacting both employees and contractors.

This move aims to increase operational efficiencies, reduce operating costs, and better align its workforce and cost structure with current market conditions.

Enphase plans to cease operations at its contract manufacturing locations in Timisoara, Romania, and Wisconsin, U.S., and also resize its other contract manufacturing sites.

The company will focus on manufacturing microinverters in the U.S. with its two existing contract manufacturing partners in South Carolina and Texas. Once these other U.S. sites have fully ramped production, the company expects to have a global capacity of approximately 7.25 million microinverter units per quarter, of which approximately 5 million units of capacity will be in the U.S.

The company estimates that it will incur approximately $16 million-$18 million in restructuring and asset impairment charges, of which approximately $7 million will be cash expenditures.

Enphase expects to reduce its non-GAAP operating expenses to be in the range of $75 million-$80 million a quarter in 2024 when these restructuring actions are substantially concluded within the first half of 2024.

The decision comes in the wake of decreased consumer demand for solar inverters in the U.S., attributed to metering reform in California and heightened lending rates, leading to high inventory levels for companies like Enphase, reported Reuters.

Price Action: ENPH shares are trading higher by 1.27% at $125.60 in premarket on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. 

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