Solar-panel maker SunPower has announced plans to axe 2,500 jobs, as part of its restructuring efforts to reduce operating expenses.
As part of the restructuring program, the San Jose, California-based company will shut down a 700MW factory in the Phillippines.
SunPower president and CEO Tom Werner said: “We believe that our restructuring initiatives will enable us to successfully navigate through the current market transition and maximize cash flow while successfully positioning the company for the next phase of industry growth.”
The company also plans to reduce its 2017 annual operating expenses to less than $350m and significantly decrease its inventory this year.
Besides, it aims to bring down its annual 2017 capital expenditure by over 50% to approximately $100m.
The initiatives are expected to result in total restructuring charges of $225m to $275m for the company through the end of 2017.
However, SunPower said that it will continue to invest next generation cell and module technology as well as complete solutions.
Werner said: “We are committed to our diversified go to market strategy, continuing to invest in our industry leading technology and product solutions, reducing our operational and manufacturing cost structure and continuing to allocate resources to those areas that will improve our global competitive position.”
In August, the company announced a workforce reduction of approximately 15% or 1,200 employees, primarily related to its Philippine facility closure.
To realign its power plant segment principally around its core markets, SunPower decided to close our Philippine panel assembly facility and transfer the equipment to its latest generation, lower cost facilities in Mexico.