Herzliya, January 5: SolarEdge Technologies, an Israel-based solar tech company known for developing a DC-optimised inverter system, is now relying on job cuts to tackle its ongoing struggles in the market. Last year, the Israeli solar tech company also laid off several employees amid its difficulties. In 2025, the SolarEdge layoffs will affect more people, marking its first round.

In January 2024, SolarEdge laid off 900 employees, 500 of whom were based in Israel. This year, the layoffs are expected to be announced as the solar tech company struggles with major challenges in its two main markets—the United States and Europe. In the US, SolarEdge has been facing a decline in demand due to high interest rates making the installation of solar panels on residential rooftops not economically viable. Layoffs in 2024: 151,484 Employees Laid Off This Year by 542 Companies, Tech Leaders Tesla, Intel, Dell, Microsoft, Meta and Others Cut Thousands of Jobs; Check Details.

On the other hand, the Israel-based solar technology firm had been facing a different struggle of having excess inventory in Europe, according to a report by CTech. The report mentioned that the oversupply came from the initial response to the Ukraine war when the restrictions on importing natural gas from Russia prompted other countries to store alternative energy products. This included stockpiling SolarEdge's products and solutions. 

However, energy and gas prices stabilised, and excessive inventory remained the same, putting more weight on the company and its performance. Despite facing these challenges, the solar tech company is expected to perform positively in the market. If interest rates drop and electric prices rise, the company would benefit from the favourable market amid improved economic viability. Google Layoffs Coming on New Year 2025? Tech Giant Likely To Terminate Low-Performing Employees in January, Say Reports.

Goldman Sachs reportedly predicted that SolarEdge could have a business turnaround and would not struggle to repay the exaggerated USD 350 million in bonds due in September 2025. However, the ongoing struggles have resulted in several layoff rounds affecting employees amid changes in the leadership. The CFO stepped down, CEO Zavi Lando resigned, and chairman Nadav Zafrir, who played a major role in the company, also stepped down, letting Avery More take their place. The interim CEO, Ronen Faier, also served for a brief period until Shuki Nir took the role. 

(The above story first appeared on LatestLY on Jan 05, 2025 12:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).