STOCK TITAN

SolarEdge Announces Closure of Energy Storage Division

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

SolarEdge Technologies (NASDAQ: SEDG) announced the closure of its Energy Storage division as part of focusing on core solar activities. The closure will result in approximately 500 employee layoffs, primarily in South Korea. The company expects quarterly operating expense savings of $7.5 million, with full implementation by second half of 2025. SolarEdge plans to sell assets related to storage division, including battery cell and pack manufacturing facilities. The decision won't affect the solar business sale of batteries for residential and commercial markets. The move aims to achieve financial stability through cost reduction and focus on core business lines.

SolarEdge Technologies (NASDAQ: SEDG) ha annunciato la chiusura della sua divisione di Energy Storage come parte della strategia di concentrazione sulle attività solari principali. La chiusura comporterà circa 500 licenziamenti, principalmente in Corea del Sud. L'azienda prevede un risparmio sulle spese operative trimestrali di 7,5 milioni di dollari, con piena attuazione entro la seconda metà del 2025. SolarEdge prevede di vendere beni legati alla divisione di stoccaggio, comprese le strutture di produzione di celle e pacchi per batterie. Questa decisione non influenzerà la vendita di batterie per il settore residenziale e commerciale. L'obiettivo è raggiungere la stabilità finanziaria attraverso la riduzione dei costi e la concentrazione sulle linee di business principali.

SolarEdge Technologies (NASDAQ: SEDG) anunció el cierre de su división de Energy Storage como parte de su enfoque en actividades solares clave. El cierre resultará en aproximadamente 500 despidos, principalmente en Corea del Sur. La compañía espera un ahorro en gastos operativos trimestrales de 7,5 millones de dólares, con plena implementación para la segunda mitad de 2025. SolarEdge planea vender activos relacionados con la división de almacenamiento, incluidas instalaciones de fabricación de celdas y paquetes de baterías. La decisión no afectará la venta de baterías para mercados residenciales y comerciales. Este movimiento busca lograr la estabilidad financiera a través de la reducción de costos y el enfoque en líneas de negocio centrales.

SolarEdge Technologies (NASDAQ: SEDG)는 핵심 태양광 활동에 집중하기 위한 일환으로 에너지 저장 부문의 폐쇄를 발표했습니다. 이 폐쇄로 인해 주로 한국에서 약 500명의 직원이 해고될 예정입니다. 회사는 2025년 하반기까지 완전 실행을 목표로 750만 달러의 분기 운영 비용 절감 효과를 기대하고 있습니다. SolarEdge는 배터리 셀 및 팩 제조 시설을 포함한 저장 부문 관련 자산을 판매할 계획입니다. 이 결정은 주거 및 상업 시장을 위한 배터리 판매에 영향을 미치지 않을 것입니다. 이 조치는 비용 절감을 통한 재정 안정성과 핵심 비즈니스 라인의 집중을 목표로 하고 있습니다.

SolarEdge Technologies (NASDAQ: SEDG) a annoncé la fermeture de sa division de stockage d'énergie dans le cadre de sa stratégie de recentrage sur les activités solaires essentielles. Cette fermeture entraînera environ 500 licenciements, principalement en Corée du Sud. L'entreprise s'attend à des économies sur les dépenses d'exploitation trimestrielles de 7,5 millions de dollars, avec une mise en œuvre complète d'ici la seconde moitié de 2025. SolarEdge prévoit de vendre des actifs liés à la division de stockage, y compris des installations de fabrication de cellules et de packs de batteries. Cette décision n'affectera pas la vente de batteries sur les marchés résidentiels et commerciaux. L'objectif de cette mesure est d'atteindre une stabilité financière par la réduction des coûts et un recentrage sur les lignes de produits principales.

SolarEdge Technologies (NASDAQ: SEDG) kündigte die Schließung seiner Energiespeicherabteilung an, um sich auf die Kernaktivitäten im Bereich Solarenergie zu konzentrieren. Die Schließung wird voraussichtlich etwa 500 Entlassungen nach sich ziehen, hauptsächlich in Südkorea. Das Unternehmen erwartet Einsparungen bei den Betriebskosten von 7,5 Millionen Dollar pro Quartal, mit vollständiger Umsetzung bis zur zweiten Hälfte des Jahres 2025. SolarEdge plant den Verkauf von Vermögenswerten, die mit der Speicherabteilung zu tun haben, einschließlich der Produktionsanlagen für Batteriezellen und -pakete. Die Entscheidung wird sich nicht auf den Verkauf von Batterien für Wohn- und Gewerbemärkte auswirken. Ziel dieser Maßnahme ist es, finanzielle Stabilität durch Kostensenkung und Konzentration auf die Kerngeschäftsbereiche zu erreichen.

Positive
  • Expected quarterly operating expense savings of $7.5 million
  • Strategic focus on core solar business and PV-attached storage
  • Asset sale opportunity from manufacturing facilities
Negative
  • Workforce reduction of approximately 500 employees
  • Complete closure of Energy Storage division
  • Restructuring costs and potential asset write-downs

Insights

This strategic restructuring marks a significant shift for SolarEdge, with both immediate and long-term financial implications. The closure of the Energy Storage division and 500-employee reduction will generate $7.5 million in quarterly operating expense savings, demonstrating a clear focus on cost optimization and profitability. The move to divest manufacturing facilities while maintaining solar-related battery sales indicates a refined business strategy targeting core competencies.

The decision reflects broader industry challenges in the energy storage sector, where intense competition and margin pressure have made standalone storage operations increasingly difficult to sustain profitably. By concentrating on their established solar business and PV-attached storage, SolarEdge is positioning itself for improved financial stability and operational efficiency. The expected timeline for full cost savings realization by H2 2025 suggests a measured approach to this transition.

This restructuring reflects broader market dynamics in the renewable energy sector. The decision to maintain PV-attached storage while divesting from standalone storage manufacturing highlights the evolving industry landscape where integrated solutions are gaining prominence over isolated storage products. The South Korean workforce reduction signals a shift away from vertical integration in battery manufacturing, likely due to intense competition from established Asian battery manufacturers.

The timing of this announcement, amid global supply chain adjustments and shifting energy storage economics, suggests SolarEdge is adapting to market realities where specialized focus may yield better returns than diversification. This strategic pivot could strengthen their competitive position in their core solar market while reducing exposure to the highly competitive battery manufacturing space.

MILPITAS, Calif.--(BUSINESS WIRE)-- SolarEdge Technologies, Inc. (“SolarEdge” or the “Company”) (NASDAQ: SEDG), a global leader in smart energy technology, announced today that as part of its focus on its core solar activities, it will cease all activities of its Energy Storage division. This decision will result in a workforce reduction of approximately 500 employees, most of whom are in South Korea. The expected quarterly operating expenses savings due to the closure are approximately $7.5 million with the full run rate expected to be achieved by the second half of 2025. The Company intends to sell the assets related to the storage division activities including its manufacturing facilities for battery cells and packs. This does not impact the solar business sale of batteries for residential and C&I markets.

Ronen Faier, Interim Chief Executive Officer of SolarEdge, said: "The decision to close our Energy Storage division was the result of a thoughtful analysis of our portfolio of businesses and product lines, industry trends, and the competitive environment. The measures also represent continued execution of two of our main priorities: financial stability through cost reduction, return to cash flow positivity and profitability; and focus on our core business lines of solar, PV-attached storage and energy management capabilities. I wish to thank our Energy Storage division employees for all of their efforts in building this business.”

The Company has filed a Form 8-K at www.sec.gov with additional details.

About SolarEdge

SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries and grid services solutions. Visit us at: solaredge.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include information, among other things, concerning: our restructuring plan, our workforce reduction initiative, possible or assumed future results of operations; future demands for solar energy solutions; business strategies; industry and regulatory environment; general economic conditions; potential growth opportunities; cancellations and pushouts of existing backlog; installation rates; and the effects of competition. These forward-looking statements are often characterized by the use of words such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negative or plural of those terms and other like terminology.

Forward-looking statements are only predictions based on our current expectations and our projections about future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Given these factors, you should not place undue reliance on these forward-looking statements. These factors include, but are not limited to, our ability to deliver on our restructuring plan and efforts and workforce reduction initiative; our future cash payments associated with these initiatives; potential future impairment charges; future demand for renewable energy including solar energy solutions; changes, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; changes in the U.S. trade environment; federal, state, and local regulations governing the electric utility industry with respect to solar energy; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; the retail price of electricity derived from the utility grid or alternative energy sources; interest rates and supply of capital in the global financial markets in general and in the solar market specifically; competition, including introductions of power optimizer, inverter and solar photovoltaic system monitoring products by our competitors; developments in alternative technologies or improvements in distributed solar energy generation; historic cyclicality of the solar industry; product quality or performance problems in our products; our ability to forecast demand for our products accurately and to match production to such demand as well as our customers’ ability to forecast demand based on inventory levels; our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; delays, disruptions, and quality control problems in manufacturing; existing and future responses to and effects of pandemics, epidemics, or other health crises; disruption in our global supply chain and rising prices of oil and raw materials as a result of various conflicts, including the evolving state of war in Israel; our customers’ financial stability and our ability to retain customers; our ability to retain key personnel and attract additional qualified personnel; our ability to manage effectively the growth of our organization and expansion into new markets and integration of acquired businesses; unrest and terrorism; macroeconomic conditions in our domestic and international markets, as well as inflation concerns, financial institutions instability, rising interest rates, and recessionary concerns; consolidation in the solar industry among our customers and distributors; cyber incidents; and other matters discussed in the section entitled “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 26, 2024 and our quarterly reports filed on Form 10-Q, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this press release is as of the date of this press release. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

Press Contact

SolarEdge Technologies, Inc.

Lily Salkin, Global Public and Media Relations Manager

Lily.salkin@solaredge.com



Investor Contact

SolarEdge Technologies, Inc.

JB Lowe, Head of Investor Relations

investors@solaredge.com

Source: SolarEdge Technologies, Inc.

FAQ

How many employees will be laid off due to SolarEdge's (SEDG) Energy Storage division closure?

Approximately 500 employees will be laid off, with most of them based in South Korea.

What are the expected cost savings from SolarEdge's (SEDG) Energy Storage division closure?

SolarEdge expects quarterly operating expense savings of approximately $7.5 million, with full implementation by the second half of 2025.

Will SolarEdge (SEDG) continue selling batteries for residential markets?

Yes, the closure does not impact SolarEdge's solar business sale of batteries for residential and commercial markets.

What assets will SolarEdge (SEDG) sell from its Energy Storage division?

SolarEdge plans to sell assets related to storage division activities, including its manufacturing facilities for battery cells and packs.

SolarEdge Technologies, Inc.

NASDAQ:SEDG

SEDG Rankings

SEDG Latest News

SEDG Stock Data

759.73M
56.89M
1.42%
104.38%
33.47%
Solar
Semiconductors & Related Devices
Link
United States of America
HERZILIYA PITUACH