Weak European demand SolarEdge (SEDG.US) to close energy storage unit and cut 12% of workforce

SolarEdge Technologies (SEDG.US), a photovoltaic inverter manufacturer, said on Wednesday it would close its energy storage division and lay off about 12% of its workforce. The Israeli company has found European demand for residential solar weak amid falling electricity prices and competition from Chinese rivals. In the US, it is facing fierce competition for its energy storage products from companies such as Enphase Energy and Tesla. Solaredge said the layoffs would affect nearly 500 employees, mostly manufacturing jobs in South Korea. Earlier this year, it laid off about 1,300 employees in a tough market environment. As of December 31, 2023, Solaredge had 5,633 employees, of whom 725 worked in South Korea. The company expects to complete the latest round of layoffs in the first half of next year. It will record related costs in the fourth quarter of 2024 and the first quarter of 2025. It expects to record total pre-tax termination and asset-related costs of $81m to $99m. The company said it would focus more on its core solar business and would offset the costs through the sale of assets in its energy storage division, including manufacturing facilities in South Korea. The company expects to record total pre-tax termination and asset-related costs of $81m to $99m.