SolarEdge Stock Swoons as 'Excess Inventory' Leads To Layoffs

SolarEdge Technologies (SEDG) is cutting 400 labor from its workforce acknowledgment to an inventory backlog and declining revenue, according to a Securities and Exchange Commission (SEC) filing Monday.

Half nan occupation cuts will hap successful Israel, wherever nan institution is based. The institution had 5,633 labor arsenic of Dec. 31, 2023.

In a missive to employees, Chief Executive Officer (CEO) Zvi Lando cited “an accumulation of excess inventory,” adding that solar installation rates are rising slower than expected successful Europe. 

Comparatively, Lando expressed much optimism astir North America. 

North America Showing 'Slight Growth' for SolarEdge

“In North America, we are opening to spot immoderate flimsy maturation successful installation rates, and we proceed to ramp up our U.S. manufacturing capacity,” Lando said. “This is simply a awesome opportunity some for SolarEdge and for our customers.”

SolarEdge banal slumped 15% to $26.90 arsenic of 1:53 p.m. ET Monday, and is down much than 70% truthful acold successful 2024.

A chunk of that diminution came precocious past period aft SolarEdge announced that 1 of its customers had filed for Chapter 7 bankruptcy and apt wouldn’t beryllium capable to salary its multimillion-dollar debt.