SolarEdge Announces Another Round of 200 Layoffs Amid Ongoing Restructuring
Translated & summarized from Bizportal by baba
SolarEdge is laying off approximately 200 employees worldwide, marking its fifth round of cuts since early 2024. The company, facing a market downturn and high interest rates, has reduced its workforce by about 2,400 employees in under three years. Despite recent signs of financial recovery, including improved revenues and reduced losses, SolarEdge's stock has fallen due to a weaker-than-expected third-quarter forecast. The company is also diversifying into the AI infrastructure market for new growth.
The story in 5 lines · by baba
- SolarEdge is cutting approximately 200 jobs globally in its fifth round of layoffs since early 2024.
- The company has reduced its workforce by about 2,400 employees since the beginning of 2024.
- Recent financial reports show improving revenues and profitability, but growth remains unstable.
- SolarEdge's stock dropped significantly after a disappointing third-quarter revenue forecast.
- The company is expanding into the AI data center power systems market for future growth.
SolarEdge is implementing another round of layoffs, cutting approximately 200 employees globally, with a small number affected in Israel. This marks the fifth round of job reductions for the Israeli solar energy company since the start of 2024, following previous efficiency drives aimed at addressing declining demand and a market downturn.
The current layoffs occur despite signs of recovery for the company, led by CEO Shuki Nir. Revenues are increasing, losses are shrinking, and gross profitability is improving. However, SolarEdge continues to struggle with achieving stable growth, particularly in the U.S. residential solar market, prompting management to continue cost-cutting measures.
In the second quarter of 2026, SolarEdge reported revenues of $346.2 million, a 20% increase year-over-year. The operating loss narrowed to $16 million from $115.5 million in the same period last year, and net loss decreased to $30.8 million from $124.7 million. The company also returned to a positive adjusted operating profit of approximately $10.2 million, the first time since Q2 2023, though this included a $13.3 million benefit related to U.S. tariffs.
Despite these improvements, SolarEdge's outlook for the third quarter was disappointing, with projected revenues of $310-$340 million, below Q2 results and analyst expectations. This led to a more than 20% drop in the company's stock price in August. The stock is currently down about 3% on Wall Street, with a market capitalization of around $2 billion.
Since its founding in 2006, SolarEdge was a prominent player in renewable energy, developing inverters and optimizers for solar systems. The company has faced a crisis in recent years due to a slowdown in solar installations, especially in the U.S. and European residential markets, exacerbated by high interest rates and excess inventory among distributors. Previous layoffs include about 900 employees in January 2024, 400 in July 2024, and 500 in November 2024 with the closure of its energy storage division. An additional 400 employees were cut in January 2025. In total, these measures amount to approximately 2,400 job cuts since early 2024.
Alongside cost-cutting, SolarEdge is exploring new growth avenues, including the AI infrastructure market. The company aims to expand sales of integrated energy storage systems and launch its Nexis platform to boost revenue per system. It is also entering the data center power systems market to capitalize on the growth in AI and computing infrastructure. SolarEdge projects revenues of $2.4 billion by 2029, with about $600 million expected from its new AI data center power conversion systems, targeting pilot programs in 2027 and initial revenues in 2028.
