SunPower Announces Business Restructuring and Workforce Reduction to Lower Costs and Improve Financial Performance

The solar company, SunPower, has announced plans to restructure certain business segments and reduce its workforce in an effort to lower costs. This decision caused the shares of the company to drop 16% in premarket trading. In the near future, SunPower will be letting go of about 1,000 employees and closing its SunPower Residential Installation locations and SunPower Direct sales.

As a result of these changes, the company expects to incur charges of approximately $28 million for severance benefits, contract terminations, and write-offs. The aim of these moves is to simplify the business structure of the company, move away from areas that have not been profitable and enhance financial controls. SunPower’s Principal Executive Officer Tom Werner explained these decisions in a letter to employees, emphasizing the need to improve the company’s financial performance.

The restructuring efforts of SunPower are aimed at streamlining operations, cutting costs and focusing on areas with higher profitability potential. By making these changes, the company hopes to position itself for long-term success in the competitive solar energy market.