More job cuts are coming to SunPower as solar panel demand declines. The company will close a plant in the Philippines and cut an additional 2,500 jobs.
The job cuts come after SunPower already laid off 1,200 workers, or about 15 percent of its total workforce, in August. The new announced cuts represent about 25 percent of SunPower’s workforce, USA Today reported.
Although the solar energy company has cut its costs drastically in the last year as the price of solar dropped 25 percent, SunPower projected cash flow for the year would be positive and that it would end the year with $300 million in cash, USA Today reported.
“This comprehensive restructuring program will enable us to successfully navigate the current challenging industry conditions while positioning us for success over the long term,” CFO Chuck Boynton said in a statement reported by USA Today.
The stock of the San Jose-based company was up 2 percent Tuesday after the news but has fallen 76 percent this year, according to the Fiscal Times.
SunPower blamed the recent extension of federal tax incentives for several more years for taking away the urgency some consumers felt to have solar panels installed this year. Consumers may also be taking a wait-and-see approach in case there are further price declines, according to Reuters.
Sunpower CEO Tom Werner told Reuters he expected prices to level out this year.
“We are planning for (price) stability, meaning they won’t materially decrease or impair,” Werner said, adding that he didn’t expect prices to increase either.
SunPower is majority owned by French energy giant Total SA.
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