Enphase Energy announces 10% workforce reduction

In a regulatory filing, Enphase Energy stated, “On December 18, 2023, Enphase Energy published a Message from the CEO to Enphase Employees on its website about the implementation of a restructuring plan designed to increase operational efficiencies and execution, reduce operating costs, and better align its workforce and cost structure with current market conditions, and the company’s business needs, strategic priorities and ongoing commitment to profitable growth. As part of the Plan, the company will be reducing its global workforce by approximately 10%, including contractors and employees. In addition, the company will be streamlining its operations by ceasing operations at its contract manufacturing locations in Timisoara, Romania and Wisconsin, United States, and resizing its other contract manufacturing sites. The company will focus on manufacturing microinverters in the United States with its two existing contract manufacturing partners in South Carolina and Texas. Manufacturing equipment currently located in Timisoara, Romania and Wisconsin, United States will be redeployed for use at these two other facilities in the United States. Once these other U.S. sites have fully ramped production, the company expects to have a global capacity of approximately 7.25 million microinverter units per quarter, of which approximately 5 million units of capacity will be in the United States. The company estimates that it will incur approximately $16 million to $18 million in restructuring and asset impairment charges, of which approximately $7 million will be cash expenditures. Approximately $15 million of the charges are expected to be incurred in the fourth quarter of 2023. The estimated impact of charges related to the Plan is not expected to be material to the company’s financial results or overall financial condition.The actions associated with employee restructuring under the Plan are expected to be substantially complete within the first half of 2024, subject to local laws and consultation requirements. The actions associated with the manufacturing restructuring under the Plan are also expected to be substantially complete within the first half of 2024. The financial outlook for the fourth quarter of 2023 furnished in the company’s third quarter of 2023 earnings release filed with its Current Report on Form 8-K on October 26, 2023 remains unchanged except for GAAP operating expenses, which are expected to increase by approximately $15 million of restructuring and asset impairment charges in connection with the Plan. The company expects to reduce its non-GAAP operating expenses to be in the range of $75 million to $80 million a quarter in 2024 when these restructuring actions are substantially complete within the first half of 2024.”