SunPower, a company that makes and sells solar panels, will cut 25% of its workforce in a bid to cut costs and, eventually, grow the size of the company.
The company said in a statement on Wednesday that it will cut 2,500 jobs, close its 700-megawatt nameplace capacity Fab 2 Facility, reduce expenses to less than $350 million and “substantially” decrease 2016 inventory. It also will reduce capital expenditures by more than 50% to about $100 million and continue to invest in next-generation cell and module technology.
The company expects restructuring charges of $225 million to $275 million through the end of next year of which about 30% will be in cash, SunPower said.
“Given the current market dislocation, we have made the strategic decision to implement a broad restructuring program to position the company for sustained, long term profitability,” Chief Executive Tom Werner said in a statement on Wednesday. “We believe that our restructuring initiatives will enable us to successfully navigate through the current market transition and maximize cash flow while successfully positioning the company for the next phase of industry growth.”