SunPower (SPWR) announced a restructuring plan on Wednesday to further reduce operating costs. The company will lay off approximately 1,000 employees in the coming days and weeks, wind down its SunPower Residential Installation locations, and close SunPower Direct sales. SunPower expects to incur approximately $28 million in restructuring charges, with half related to severance benefits and the other half to early contract termination and asset write-offs.
CEO Tom Werner stated in a letter to employees that the restructuring is necessary to achieve financial viability. “To position SunPower for the future, we need to simplify our business structure, transition away from areas where we have been unable to sustain profitable operations, and improve financial controls,” Werner said.
SunPower’s restructuring announcement comes after the company’s shares fell to multiyear lows on Tuesday following the disclosure of misstatements in its audited financial statements. The company plans to restate nearly two years of results.
This news highlights SunPower’s ongoing challenges as it seeks to reduce costs and improve its financial performance. The company has been facing difficulties related to its business model and its ability to scale its operations profitably.
