Solar firm SunPower to reduce workforce, shut business segments (updated)
24/04/2024 14:31
(Adds shares in paragraph 1, details on restructuring
throughout)
April 24 (Reuters) - SunPower SPWR.O said on Wednesday
it plans to reduce its workforce and shut down certain business
segments as part of a restructuring to help lower costs, sending
the solar company's shares down 16% premarket.
The company said it will reduce its workforce by about 1,000
people in the coming days and weeks, and will also wind down its
SunPower Residential Installation locations and close SunPower
Direct sales.
The company expects charges of about $28 million related to
severance benefits, early contract terminations and certain
write-offs.
The steps are being taken to simplify the business
structure, transitioning away from areas where the company has
been unable to sustain profitable operations, and improving
financial controls, SunPower's Principal Executive Officer Tom
Werner said in a letter to employees.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shounak
Dasgupta)
((mrinalika.roy@thomsonreuters.com))