Enphase Energy announced it will reduce its global workforce by approximately 10%, impacting approximately 350 contractors and employees. The company will streamline operations by ceasing contract manufacturing operations in two locations—Timisoara, Romania and Wisconsin in the United States—and resizing other contract manufacturing sites.
In addition, Enphase plans to continue hiring and travel freeze through 2024 and cut discretionary spending.
The announcement was made by Badri Kothandaraman, Enphase President and CEO.
The CEO blames high interest rates for reducing demand for its inverters in the U.S. and Europe.
Enphase’s worldwide microinverter contract manufacturing operations currently have a combined capacity of approximately 10 million units per quarter. Kothandaraman said the company will reduce capacity to 7.25 million units per quarter and focus manufacturing in the United States.
Employees in the U.S. that are laid off will receive:
- Will pay employees until the last working day, generally January 5, 2024, with exceptions to support business or individual needs (the “notification period”). Employees may receive pay in lieu if their last working day is prior to the expiration of the notification period;
- Severance packages that will include cash and vesting of certain restricted stock units (RSU);
- Continue to provide health-care benefits for participating employees until the end of the month of the last working day, and employees may elect to continue coverage (at their own expense) under COBRA thereafter; and
- Will allow employees to use company time to seek their next opportunity during the notification period.
