SunPower Announces Job Cuts and Business Segment Shutdowns in Restructuring Plan to Streamline Operations

On Wednesday, SunPower announced that it would be cutting its workforce and shutting down certain business segments as part of a restructuring plan aimed at lowering costs. This news caused the solar company’s shares to drop by 16% in premarket trading.

In the coming days and weeks, SunPower plans to cut its workforce by around 1,000 employees. Additionally, the company will wind down its SunPower Residential Installation locations and close SunPower Direct sales as part of the restructuring efforts.

SunPower anticipates incurring charges of approximately $28 million related to severance benefits, early contract terminations, and certain write-offs as a result of these changes. The company’s Principal Executive Officer, Tom Werner, stated in a letter to employees that these steps are being taken to simplify the business structure, move away from areas where profitability has been unsustainable, and improve financial controls.

Overall, SunPower is working towards a more efficient and sustainable business model through these restructuring initiatives.