Herzliya, July 15: SolarEdge, an Israel-based solar energy technology company involved in developing DC-optimised inverter systems, is expected to announce a new round of layoffs after January 2024, when it cut 900 jobs, out of which 500 were based in Israel. SolarEdge Technologies had reduced its workforce for reasons like adapting to the company's cost structure and the market's changing condition. 

Globes reported that the SolarEdge layoffs in January 2024 were implemented with expectations of saving up to USD 75-80 million quarterly. The report mentioned that the company had been going through a difficult period even after laying off about 900 employees at the beginning of this year. At the end of 2023, the Israel-based solar energy tech company had around 5,633 employees; of these, 3,160 were based in Israel. Collegedunia Layoffs: Education Portal Lays Off Around 100 Employees, Plans Further Job Cuts Across Departments To Streamline Operations and Reduce Costs, Says Report.

SolarEdge, led by CEO Zvi Lando, had a USD 20 million market cap at its peak, which has currently dropped to USD 1,8 million. However, the report said the company witnessed a slight recovery in its share price this month. Israel-based companies announced major layoff rounds in the past few months amid cost-cutting and restructuring exercises. These companies included BlueVine, Perion Network, Moovit and others. 

SolarEdge, which produces systems for maximising power output, benefitted from these products' high demand due to low interest rates. These factors facilitated the solar energy tech company's financing of more projects, along with rising electricity tariffs worldwide. The company's distributors who bought the products were left with stocks, leading to a decline in revenue and sales. John Deere Layoffs Continue: World’s Largest Farm Equipment Maker To Let Go More 345 Employees Amid Economic Challenges, Effective From September 20.

Amid the recent improvement over the first quarter and decline in last year's quarter, the company is expected to witness a 4% to 0% gross profit margin. SolarEdge raised USD 300 million in convertible debt with yearly interest rates of 2.25%, due for redemption in 2029. Amid all these developments, the report by Globes said that the company might be ready to announce another SolarEdge layoff round soon. 

(The above story first appeared on LatestLY on Jul 15, 2024 09:01 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).