In an SEC filing, SunEdison has confirmed rumors that it will implement significant workforce cuts. Initially, media had reported that around 10% of its 7,300 strong workforce would go. However, in the filing, it has said that up to 15% will be cut.
The decision, approved by the Board of Directors on September 29, has been taken in light of the companys recent shopping spree, which has seen a number of business activities duplicated; and in response to both current and expected market conditions.
Charges of between US$30 million and $40 million will be incurred from the restructuring, which will be recorded in Q4 2015 and Q1 2016. "These charges primarily consist of severance and other benefits to terminated employees, most of which are expected to be paid out by the end of the fourth quarter of 2016," said SunEdsion in the filing.
In a seperate statement, also released yesterday, SunEdison said it would be streamlining its operations. An investor presentation will be held tomorrow, Wednesday, with CEO, Ahmad R. Chatila and CFO, Brian Wuebbels, in order to discuss the changes further.
Part of the changes are expected to see SunEdsion focus on fewer, more important markets, like India, the U.S. and China; and streamline its business structure, which has become increasingly complicated on the back of the formation of two yieldco vehicles TerraForm Power and TerraForm Global and its recent acquisitions, which include Vivint Solar.
Overall, the company has seen its share value slide around 80% this year.
New appointment
In other SunEdison news, the company has today announced that Stephen Cerrone has been appointed the new chief human resources officer. Cerrone previously worked at Hudson's Bay Company, Sara Lee Corporation and JPMorgan/Bank One Corporation.
Perhaps with a nod to the tough times the new human resources manager faces, with over 1,000 staff layoffs, SunEdsion president and CEO said, "With more than 30 years of experience in all areas of human resources, including navigating complex organizational and business issues and leading strategic change across multiple industries and geographies, Stephen has the skills and leadership to make a powerful and immediate contribution to our company."
It was announced in a SEC filing by SunEdison on October 5, that Cerrone purchased 80,000 shares before joining the company. He further received an initial award of 150,000 non-qualified stock options, 50,000 restricted stock units for shares of TerraForm Power, Inc. Class A common stock and 50,000 restricted stock units for shares of TerraForm Global, Inc. Class A common stock.
This article was updated on October 6, 16.00 CEST, to include news of the appointment of Cerrone
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