US-based residential solar provider SunPower has announced its plans to reduce its workforce and close business segments to restructure its businesses and reduce costs.
The company aims to axe around 1,000 jobs within a few weeks and shut down its business divisions, SunPower Residential Installation (SPRI) and SunPower Direct.
According to SunPower’s annual report, the company had about 4,710 full-time employees as of 1 January 2023, of which about 3,480 were based in the US and about 1,230 in the Philippines.
The restructuring would cost around $28m, including around $14m in severance benefits and $14m related to early contract termination and certain write-offs.
The planned restructuring would be completed by the end of the second quarter of this year.
SunPower principal executive officer Tom Werner said: “While we worked hard to avoid this outcome, the market has been slower to recover than we initially expected.
“Additionally, we have dedicated resources to improving our financial controls and will continue to do so. We believe this shift in our strategy is necessary to safeguard the company’s future.”
SunPower will inform the employees who are impacted by the restructuring through personal emails and will host subsequent team meetings to provide more clarity on the next steps.
The company said that some of the impacted team members will depart today, and others will remain on with us for some time to help facilitate the transition for our customers.
It is offering a competitive separation package to help its former employees in their transition.
SunPower’s Blue Raven Solar, installation partners, and its certified dealer network will handle all operations from pre-installation through system activation, after a brief transition period.
Furthermore, the residential solar company plans to focus on strengthening its dealer network and installation partners and continue to invest in its New Homes business.
Werner added: “Through these transitions, we remain committed to delivering high-quality, affordable clean energy systems that meet the unique needs of families across the country.
“We are dedicated to doing this in a manner that aims to ensure a positive experience for our customers on their solar journey.”
