SolarEdge, an Israel-based solar inverter manufacturer, has announced a restructuring initiative to trim operating expenses and adapt its cost structure to current market conditions.

As part of this plan, around 16% of the company’s global workforce, totaling approximately 900 employees, will be affected. Approximately 500 of these job cuts will come from SolarEdge’s diverse manufacturing sites.

The company said that the recent staff reduction announcement is a continuation of the steps it has previously implemented to adjust to the prevailing market conditions. These measures include ceasing manufacturing operations in Mexico, scaling down manufacturing capacity in China, and concluding the company’s involvement in light commercial vehicle e-mobility activities.

The company is expected to disclose additional information in its year-end earnings release, which is anticipated to be made public by the conclusion of February 2024.

“We have made a very difficult but necessary decision to implement a workforce reduction and other cost-cutting measures in order to align our cost structure with the rapidly changing market dynamics. We are making every effort to treat our departing colleagues with respect and gratitude for their contributions and support them in their transition,” said Zvi Lando, Chief Executive Officer of SolarEdge.

Lando said that the company remains confident in the long-term growth of the solar energy market and its leading position in the smart energy space.

SolarEdge recorded a net loss of $61.2 million in the third quarter of 2023, a 348% year-over-year drop from the net profit of $24.7 million. The drop in net income was attributed to the considerable drop in demand, especially from the company’s primary markets in Europe, and the high inventory of products in the channels.

The International Energy Agency’s World Energy Employment report found that investments in clean energy technologies drove demand for new workers in every region of the world. However, a shortage of skilled labor has emerged as a key barrier to ramping up activity.