SunPower Winds Down Residential Solar Installations, Cuts 1,000 Jobs
SunPower (Nasdaq: SPWR) has announced plans to wind down its residential solar installations and lay off 1,000 employees. The company, which is one of the largest residential solar installers in the US, has faced financial challenges in recent months and defaulted on a credit agreement in late 2023.
SunPower cited the need to achieve financial viability as the reason for the layoffs. The company’s principal executive officer, Tom Werner, stated in an email to employees that the move is necessary to align the business with its new focus.
Layoffs and Restructuring
The layoffs will reduce SunPower’s workforce by approximately 20%. The company plans to close its SunPower Residential Installation (SPRI) locations and cease SunPower Direct sales. The pipeline operations from pre-installation through system activation will be handled by Blue Raven Solar, installation partners, and SunPower-certified dealers.
SunPower will continue to manage ongoing customer service needs, including operations and maintenance (O&M), and honor its Complete Confidence warranty. The company also plans to invest in its new homes business, which has continued to grow.
Industry Impact
SunPower’s announcement is a blow to the US residential solar industry, which has been facing challenges in recent months. The company is one of the top 10 residential solar installers by US market share. The layoffs will not only impact employees but also customers who are facing delays and cancellations of their solar installations.
Customer Concerns and SunPower’s Response
One SunPower customer in Pennsylvania has reported that he lost over $60,000 to an installation partner, Ad Energy, which disappeared after installing only 12 out of 42 panels on his roof. SunPower has distanced itself from Ad Energy and stated that it is not responsible for the costs associated with completing the solar installation.
Financial Challenges and Restructuring
SunPower has faced financial difficulties in recent months. In March, the company reported misstatements in its results for fiscal year 2022, which resulted in a $15-$25 million decrease in income. The company has also announced restructuring plans to reduce costs.
The layoffs are part of SunPower’s efforts to achieve financial viability. The company hopes to focus on its core businesses and streamline its operations to improve its financial performance.
