From pv magazine USA
Enphase Energy announced it is reducing its global workforce by approximately 6%, impacting about 160 employees.
“These decisions are difficult, but necessary for us to become a leaner and more efficient company,” said Badri Kothandaraman, president and chief executive officer of Enphase Energy, in a letter to employees. “I want to express my deepest gratitude to our departing colleagues for their dedication and many contributions to Enphase.”
The company said the move is a direct response to a “meaningful” shift in US policy, including the expiration of the federal 30% Residential Clean Energy Tax Credit (25D) on Dec. 31, 2025. Enphase anticipates the policy change will reduce near-term demand as homeowners purchasing systems with cash or loans no longer receive the credit.
The restructuring plan aims to reduce quarterly non-GAAP operating expenses to a range of $70 million to $75 million by the third quarter of 2026, down from the current level of approximately $80 million.
“To align with our updated 2026 outlook, we are taking targeted steps: simplifying parts of the organization; making a modest reduction in teams, globally; tightening spending, and focusing investment on the priorities that matter most,” Kothandaraman said.
The restructuring includes scaling productivity through the use of AI and automation for customer service, permitting, and forecasting.
As part of the shift, Enphase said it will transition to “distribution-led” coverage in select smaller markets, specifically Brazil, the Philippines, and South Africa. The company also plans to limit R&D investment in “early-stage adjacent initiatives” such as portable energy systems and balcony solar, focusing instead on its core product roadmap, including its 9th-generation microinverters and 5th-generation battery platforms.
Impacted employees in the United States will generally remain on the payroll through Feb. 16, 2026. Severance packages include a minimum of 13 weeks of pay, healthcare benefits through the end of the separation month, and accelerated vesting of certain restricted stock units (RSUs).
The action follows previous workforce reductions in late 2023 and 2024 as the company adjusted to high interest rates and California’s transition to NEM 3.0.
Enphase estimates it will incur approximately $4.6 million in total restructuring and asset impairment charges related to this new plan.
Enphase is public on the Nasdaq under the ticker ENPH. Despite the headcount reduction, the company remains focused on growth initiatives such as prepaid leases and accelerating the adoption of battery energy storage systems.
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