Massive layoffs in the energy storage industry

What is a massive layoff?

A massive layoff is a workforce reduction that results in the loss of a significant number of employees. Usually, this refers to a significantly large layoff of a certain percentage of active employees which is covered by the Federal WARN Act (Worker Adjustment and Retraining Notification Act of 1988).

Will SolarEdge Technologies close energy storage division?

SolarEdge Technologies will close Energy Storage division, resulting in workforce reduction of ~500 employees, mostly in South Korea.

What happened to SolarEdge Technologies?

SolarEdge Technologies (NASDAQ: SEDG) +3.2% pre-market Wednesday after announcing plans to shut down its Energy Storage division, resulting in a workforce reduction of ~500 employees, mostly in South Korea. The company had laid off ~1,300 employees earlier this year; it had 5,633 employees at year-end 2023, including 725 based in South Korea.

How many employees does SolarEdge have?

The company had laid off ~1,300 employees earlier this year; it had 5,633 employees at year-end 2023, including 725 based in South Korea. SolarEdge (SEDG) said it expects to save $7.5M in quarterly operating expenses due to the closure, with the full run rate to be achieved by H2 2025.

Is SolarEdge preparing for another wave of layoffs?

SolarEdge is preparing for another wave of layoffs expected to take place in the coming month, Calcalist has learned. The scope of the layoffs remains unknown. If the move materializes, it will mark the fourth wave of layoffs since January of last year and the first under CEO Shuki Nir.

How much money will SolarEdge save from closing?

SolarEdge expects annual savings of $7.5 million from the closure, starting mid-2025. The division had relied on the operations of Kokam, a South Korean company acquired by SolarEdge in 2018 for $110 million.