Enphase Energy To Cut 17% Workforce

Enphase Energy announced plans to reduce its global workforce by around 17 per cent, affecting roughly 500 employees and contractors. The solar inverter manufacturer is implementing these cuts to streamline operations amid declining residential solar demand, particularly in Europe, where the market for home solar installations has weakened. This decision will involve consolidating contract manufacturing into four existing locations in the United States, India, and China, while ending production in Guadalajara, Mexico.

Enphase's stock has dropped nearly 50 per cent this year, with declining demand driven by lower electricity prices and intense competition in key markets like the Netherlands and Germany. The restructuring plan will incur an estimated cost of $17 million to $20 million, with approximately $14 million recorded in Q4 2024, including cash expenses between $11 million and $12 million.

This workforce reduction follows a prior job cut in December last year, when the company reduced its global workforce by 10 per cent, impacting about 350 roles. CEO Badri Kothandaraman noted that challenging market conditions have impacted Enphase and its partners throughout 2024. The restructuring is expected to be substantially completed by the end of Q1 2025.