SunPower to close business units, cut about 26% of workforce

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From pv magazine USA

Residential solar, energy storage, and EV charging provider SunPower has announced it will close business segments as it restructures to lower costs.

The company’s stock is currently trading 96% lower than all-time highs and is down 86% over the past year. SunPower’s revenues reported last December reflected a 28% year-over-year decline, while operating expenses increased, and net income resulted in a loss of $123.9 million.

Its struggles reflect a market-wide retraction in residential solar, which has been battered by worsened economics from high-interest rates and unfavorable policy and rate-making changes.

Previous to the job cuts, the company employed 3,800 people in full-time positions, including employees at Blue Raven Solar. It announced in a press release today that it would cut 1,000 jobs as part of its restructuring.

SunPower announced plans to wind down its residential solar installation locations and the closure of its direct sales unit.

“While we worked hard to avoid this outcome, the market has been slower to recover than we initially expected,” said Tom Werner, principal executive officer. “Additionally, we have dedicated resources to improving our financial controls, and will continue to do so. We believe this shift in our strategy is necessary to safeguard the company’s future.”

After a short transition period, all project pipeline operations from pre-installation through system activation will now be conducted by Blue Raven Solar and other installation partners and SunPower certified dealers.

“Moving forward, SunPower will focus our efforts on serving our best-in-class Dealer Network and installation partners,” said Werner. “We plan to continue to invest in our New Homes business, which continues to grow. We will still manage ongoing customer service needs, including operations and maintenance (O&M), and will continue to honor our Complete Confidence warranty.”

 

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