Enphase Energy to lay off 10% of its workforce, citing 'challenging' economy

Enphase Energy Inc. said late Monday it plans to lay off 10% of its workforce, including workers and contractors in Wisconsin, as it seeks to “right-size” its business.

Enphase ENPH, +0.09% Chief Executive Badri Kothandaraman said that the maker of microinverters, battery storage and other products for the solar and alternative-energy industry was making “difficult changes” in face of a “challenging macroeconomic environment.”

“Over the last few months, we have made significant efforts to reduce our operating costs, but we have more work to do to right-size our operations and become leaner and more efficient,” the executive said in a letter to employees attached to a filing late Monday.

The layoffs will impact about 350 contractors and employees, with Enphase ending manufacturing operations at two of its locations: Timisoara, Romania, and Wisconsin, it said. The company also extended its hiring and travel freeze through the next year and plans to cut discretionary spending “on several other fronts,” it said.

Enphase estimated about $16 million to $18 million in restructuring and asset-impairment charges, of which about $7 million will be cash expenditures. Some $15 million of the charges are expected to be incurred in the fourth quarter of 2023, it said.

The charges are “not expected to be material to the company’s financial results or overall financial condition,” Enphase said.

Shares of Enphase edged lower in the after-hours session Monday, after ending the regular trading day up 0.1%. The stock has lost 53% this year, contrasting with gains of around 23% for the S&P 500 index SPX.

Earlier Monday, SunPower Corp. SPWR, -31.27% spooked investors with a going-concern warning related to debt coming due. Alternative-energy stocks have been under pressure this year amid dimmed demand and rising interest rates.