Enphase Energy to cut 17% of workforce, shut down production in Mexico

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Enphase Energy has revealed plans to cut 17% of its global workforce, affecting about 500 employees and contractors in total, as part of a major restructuring effort.

The company said in a statement to the US Securities and Exchange Commission that it aims to align its operations and workforce with current business needs, focusing on cost reduction and streamlining manufacturing to four locations by mid-2025.

The company said it will streamline its operations by consolidating manufacturing at four locations and stopping contract manufacturing in Guadalajara, Mexico.

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Despite these cuts, Enphase Energy noted that it plans to maintain its global microinverter production capacity at 7.25 million units per quarter.

The company said it expects to incur $17 million to $20 million in restructuring and asset impairment charges, with most of the costs to hit in the fourth quarter of 2024. It said it also aims to reduce its non-GAAP operating expenses to $75 million to $80 million per quarter by 2025.

In addition to workforce reductions, Enphase Energy said it is introducing a number of cost-saving measures, including automation in customer service, marketing efficiency through AI, and the streamlining of non-essential expenses.

In July, Enphase Energy started shipping US-made IQ8P-3P microinverters for small-scale commercial solar installations, supporting up to 480 W of peak output power.

Nasdaq-listed shares of inverter manufacturers Enphase Energy and SolarEdge fell last week following US President-elect Donald Trump's victory in the 2024 US presidential election.

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