SunPower Announces Workforce Cuts and Business Segment Wind-Down as Part of Restructuring Plan to Improve Profitability
On Wednesday, SunPower announced that it would be cutting its workforce and winding down certain business segments as part of a restructuring plan aimed at lowering costs. The news caused the solar company’s shares to drop by 16% in premarket trading.
SunPower plans to cut around 1,000 employees in the coming days and weeks, as well as wind down its SunPower Residential Installation locations and close SunPower Direct sales. The company anticipates incurring charges of approximately $28 million related to severance benefits, early contract terminations, and certain write-offs as a result of these changes.
In a letter to employees, Principal Executive Officer Tom Werner explained that these steps are being taken to simplify the business structure, move away from areas where profitability has been unsustainable, and improve financial controls. He stated that the company is working towards a more efficient and sustainable business model through these restructuring initiatives.
Overall, the restructuring plan is aimed at helping SunPower become more competitive in the solar industry by streamlining its operations and focusing on areas where it can generate consistent profits.
