SolarEdge Technologies Closes Energy Storage Division, Cuts 500 Jobs

By Bobby Samwell • Wednesday, November 27 10:18 • Permanent Link

SolarEdge Technologies, Inc. has made a significant strategic decision to close its energy storage division, resulting in a workforce reduction of approximately 500 employees, mainly in South Korea. The closure is expected to lead to quarterly operating expenses savings of approximately $7.5 million, with the full run rate expected to be achieved by the second half of 2025.

The company intends to sell the assets related to the storage division activities, including its manufacturing facilities for battery cells and packs. However, the closure does not impact the solar business sale of batteries for residential and commercial and industrial markets.

Ronen Faier, the interim chief executive officer of SolarEdge, expressed that the decision to close the energy storage division was the outcome of a thoughtful analysis of the company's portfolio of businesses and product lines, industry trends, and the competitive environment. He also mentioned that the measures represent continued execution of two main priorities: financial stability through cost reduction, return to cash flow positivity, and profitability, as well as a focus on core business lines of solar, PV-attached storage, and energy management capabilities.

This decision comes as the company's response to industry trends and the competitive environment. It reflects a strategic shift towards focusing on core solar activities and smart energy solutions. Solaredge is known for creating intelligent inverter solutions that seek to maximize power generation while lowering the cost of energy produced by PV systems.

The company has filed a Form 8-K with additional details on the closure of the energy storage division.

This move marks a significant change in the company's operations and is aligned with its strategic priorities, emphasizing the importance of returning to profitability and focusing on core business lines. Following these announcements, the company's shares moved 8.0%, and are now trading at a price of $14.79. For more information, read the company's full 8-K submission here.

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