SolarEdge Technologies to lay off 400 employees

(Reuters) -SolarEdge Technologies said on Monday it would lay off 400 employees, of which 200 are in Israel, as it works to restore profitability and ensure financial stability.

The action is being taken across all departments and includes a reduction in both headcount and discretionary spending, the renewable energy firm said in a letter to its employees.

The company had 5,633 employees as of Dec. 31, 2023, according to its latest regulatory filing.

SolarEdge said it has taken this decision as a result of a downturn in the market at the end of 2023 and beginning of this year, which led to excess inventory and a current downturn in the solar industry, particularly in Europe.

Shares of the company were down 6.6% in premarket trading and have lost nearly 66% so far this year.

SolarEdge had said in January it would lay off about 16% of its global workforce, in an attempt to reduce operating costs.

The company had reported a net loss of $157 million in the first quarter, its third consecutive quarterly loss.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Shilpi Majumdar)