Enphase Energy To Slash Workforce By 10% In Global Restructuring Plan: Details
Portfolio Pulse from Shivani Kumaresan
Enphase Energy Inc (NASDAQ:ENPH) is reducing its global workforce by 10%, ceasing operations in Romania and Wisconsin, and resizing other manufacturing sites. The company will focus on U.S. production, aiming for a capacity of 7.25 million microinverter units per quarter. The restructuring will cost $16-$18 million, with $7 million in cash expenditures. Enphase anticipates non-GAAP operating expenses of $75-$80 million per quarter by 2024. The decision follows reduced demand for solar inverters in the U.S. due to metering reform and higher lending rates. ENPH shares rose 1.27% in premarket trading.
December 19, 2023 | 12:43 pm
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Enphase Energy Inc is undergoing a significant restructuring, reducing its workforce and consolidating manufacturing in the U.S., which is expected to streamline operations and reduce costs.
While the workforce reduction indicates cost-cutting measures which could improve operational efficiency and reduce expenses, the market's short-term reaction is positive, as reflected in the premarket share price increase. However, the impact of restructuring costs and the potential risks associated with consolidating manufacturing may temper investor sentiment.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100