In an effort to streamline its business structure and lower costs, SunPower has announced plans to reduce its workforce and restructure certain business segments. The solar company’s shares dropped 16% in premarket trading as a result of these changes. SunPower will be letting go of about 1,000 employees in the near future, as well as closing its SunPower Residential Installation locations and SunPower Direct sales.
The company expects to incur charges of approximately $28 million for severance benefits, contract terminations, and write-offs. These moves are aimed at simplifying the company’s business structure and enhancing financial controls. By cutting costs and focusing on areas with higher profitability potential, SunPower hopes to position itself for long-term success in the competitive solar energy market.
In a letter to employees, Principal Executive Officer Tom Werner explained these decisions, emphasizing the need to improve the company’s financial performance. He stated that by streamlining operations and cutting costs, the company can focus on areas that have greater potential for growth and profitability. Werner also emphasized that these changes are necessary for the company’s long-term success and growth in the competitive solar energy market.
