PVTIME – Enphase Energy has announced plans to cut 6% of its workforce, which is about 160 people, as part of a big plan to cut costs. The solar technology firm announced the move in a Friday filing with the Securities and Exchange Commission, saying that it had about 2,781 full-time employees according to its most recent annual filing. The announcement caused its shares to drop 0.9% in early Monday trading, with the restructuring prompted by the end of a federal tax credit that has made demand for residential solar panels weaker.
The company also said it’s going to save more money by using distributors to handle sales in some smaller markets, focusing more on research and development for its main products and software, and moving certain functions to places where it’ll cost less. It estimates total restructuring and asset impairment charges of around 4.6 million dollars, with 4.2 million dollars to be incurred in the first quarter. From the third quarter of 2026, it’s aiming to bring down adjusted operating expenses to between 70 and 75 million dollars per quarter.
This isn’t the first time they’ve tried to cut costs because demand for solar power from homes has been low. Back in November 2024, Enphase announced that it’s cutting about 500 jobs worldwide, which is about 17% of the workforce, and it’s expecting to pay out between 17 and 20 million dollars in restructuring charges. It also closed its manufacturing centre in Guadalajara, Mexico, and now has four sites in the US, India and China.
Enphase was set up in 2006 and specialises in photovoltaic microinverter technology. It listed on the US NASDAQ exchange in 2012. Then in June 2018, it bought SunPower’s microinverter subsidiary for 25 million dollars so it could be its exclusive supplier. It got into energy storage in 2020, and then it really took off. It went from making 134 million dollars to 439 million dollars in profit by 2023.
A slump in residential solar demand hit the firm hard in 2024, with net profit plummeting more than 75% to 103 million dollars. The slump carried on into 2025, with revenue of about 1.154 billion dollars and a net profit of 149 million dollars in the first nine months, including third quarter revenue of 410 million dollars and a net profit of 67 million dollars. Enphase will release its 2025 fourth quarter and full year results on 3 February 2026. Its shares have fallen 39% over the past year, closing at that level on Friday, but are up 23% so far this year.
Scan the QR code to follow PVTIME official account on Wechat for latest news on PV+ES
