FREMONT - SolarEdge Technologies (NASDAQ: NASDAQ:SEDG), a major player in smart energy solutions, has announced a restructuring plan aimed at reducing its global workforce by approximately 400 employees. This decision, made public on January 6, 2025, is part of the company's efforts to improve operational cost efficiency and resource allocation to boost performance and financial stability.
SolarEdge stock added 6.5% in pre-market Monday.
The company estimates that the restructuring will result in pre-tax charges of $3 million to $5 million, mainly consisting of severance and other one-time termination benefits. These expenses are expected to be cash-based and recognized mostly in the first quarter of fiscal 2025, with the remainder during the fiscal year.
The workforce reduction is subject to local regulations, and once completed, it is expected to save SolarEdge roughly $9 million to $11 million in quarterly expenses. These savings do not include the total costs needed to implement the restructuring plan.
In a separate development, SolarEdge has signed safe harbor agreements with two leading U.S. residential solar installation and financing companies, including Sunrun (NASDAQ: NASDAQ:RUN). These agreements, established in late December, will see SolarEdge supply domestically produced inverters, Power Optimizers, and batteries. The equipment is expected to help its partners qualify for domestic content bonus tax credits, with deliveries scheduled throughout 2025.
The safe harbor agreements are designed to secure investment and domestic content bonus tax credits for SolarEdge's partners, offering them business planning stability and certainty in project economics.
Additionally, SolarEdge has completed its second transaction for the sale of §45X Advanced Manufacturing Production Tax Credits, facilitated by the Crux platform. This transaction pertains to credits generated in the third quarter of 2024, supported by U.S.-manufactured inverters and Power Optimizers, qualifying for the 11c/w advanced manufacturing production credit.
Bertrand Vandewiele, General Manager of SolarEdge in North America, remarked on the company's commitment to supporting key industry players with U.S.-made technology. Shuki Nir, the CEO of SolarEdge, emphasized the importance of these agreements and the tax credit sale as significant steps in the company's recovery path, aiming to enhance the business outlook and financial stability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.