Spruce Power announces cost reduction measures, includes workforce adjustments

Spruce Power Holding (SPRU) Corporation announced transformative steps expected to meaningfully improve operational efficiency, drive long-term profitability and optimize the company’s financial position. These initiatives will reduce SG&A expense generating approximately $20M in annual savings. The company believes the savings will accelerate Spruce’s path to positive free cash flow and support key growth initiatives, enabling faster scaling of the company’s solar energy platform. The actions include workforce adjustments, the closure of the Denver office and the consolidation of certain roles across the organization. These changes reflect Spruce’s ongoing commitment to managing expenses and optimizing resources, while maintaining operational excellence across all levels of the business. In addition to accelerating the path to positive free cash flow, Spruce’s strategic realignment will direct additional resources to its core initiatives, including expanding its distributed solar energy platform, accelerating sales of Spruce PRO and capturing further operational efficiencies. The Company’s investments in automation and IT systems are designed to optimize workflows, reduce overhead and improve scalability across the entire business. Hayes concluded, “We are reimagining how Spruce operates and are confident that these strategic actions will give the Company a more resilient financial structure, thus increasing profitability and creating shareholder value.” One-time severance and reorganization costs will result in a charge of approximately $1M in the third quarter.