SolarEdge Technologies (SEDG) has released an update to notify the public and investors about termination and asset disposition expenses.
On January 21, 2024, the Company unveiled a restructuring plan to address industry challenges, which includes a 16% workforce reduction in the first half of 2024. This plan is a continuation of previous adjustments such as ceasing operations in Mexico and scaling down in China. The Company expects to incur $59 to $66 million in restructuring charges, including severance, asset-related charges, and manufacturing capacity reductions, as well as an additional $36 to $41 million from discontinuing its e-mobility activity. The restructuring actions are expected to be mostly completed by mid-2024, with future cash payments estimated between $53 to $58 million.
For further insights into SEDG financials, check out TipRanks’ Financials page.
