Enphase Energy Inc (NASDAQ: ENPH) said that it intended to cut its global workforce by about 17%, which would affect nearly 500 employees and contractors.
The company said in a SEC filing it would “streamline its operations by focusing contract manufacturing in four existing locations: two in the United States, one in India and one in China; and it will cease its contract manufacturing operations in Guadalajara, Mexico.”
Enphase Energy said it expected to “incur approximately $17 million to $20 million in restructuring and asset impairment charges, of which approximately $14 million are expected to be incurred in the fourth quarter of 2024, and approximately $11 million to $12 million will be total cash expenditures.”
“The estimated impact of charges related to the Plan is expected to be approximately $10 million to $13 million in employee severance and benefits, $4 million in asset impairment charges, and $3 million related to contract manufacturing and office closures,” the company added.
Stock Performance
The shares of Enphase Energy Inc (ENPH) closed 6.55% ($4.69) lower at $66.90 on Nasdaq on Friday, as they extended the losses from the previous two market sessions.
The company’s total market cap now stands at $9.04 billion.
The shares of Enphase Energy Inc (ENPH) went down 50.13% in 2023, compared with a 24.23% gain for the benchmark index, S&P 500 (SPX).
The company’s shares have retreated 49.37% so far this year.
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