Enphase Energy to cut roughly 500 employees and contractors

Accordingg to a regulatory filing, Enphase Energy (ENPH) notified its employees of a restructuring plan designed to better align its workforce and cost structure with the company’s business needs, strategic priorities and ongoing commitment to profitable growth – all while increasing operational efficiencies and reducing operating costs. As part of the Plan, the company will be reducing headcount and moving certain functions to cost efficient regions, affecting approximately 17% of its global workforce – approximately 500 employees and contractors. In addition, the company will streamline its operations by focusing contract manufacturing in four existing locations: two in the United States, one in India and one in China; and it will cease its contract manufacturing operations in Guadalajara, Mexico. The company’s global capacity for microinverters will remain steady at approximately 7.25M microinverter units per quarter, of which approximately 5M units of capacity is in the United States. The company estimates that it will incur approximately $17M-$20M in restructuring and asset impairment charges, of which approximately $14M are expected to be incurred in the fourth quarter of 2024, and approximately $11M-$12M will be total cash expenditures. The estimated impact of charges related to the Plan is expected to be approximately $10M-$13M in employee severance and benefits, $4M in asset impairment charges, and $3M related to contract manufacturing and office closures.