While saying it is comfortable with its current liquidity position, SunPower has executed a number of measures to further reduce costs in the near term to manage its business prudently during the COVID-19 crisis, it said. (Photo Credit: SunPower Corp.)
- SunPower has introduced and immediately put in place a number of measures to save costs with COVID-19 outbreak impacting solar industry
- Measures executed include reducing management salaries, freezing all hiring and merit increases, & reducing capital expenditures
- Previously announced split of the company remains on track, expected to be completed by Q2/2020
- Management has withdrawn its previously shared fiscal year guidance for 2020
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As the coronavirus rips through countries scrambling to curb its menace by resorting to mass lockdowns, SunPower Corp. is bracing itself to deal with the ‘current industry uncertainty’ owing to the COVID-19 pandemic. The American solar power company says with immediate effect it has reduced management salaries, froze all hiring and merit increases while also reducing capital expenditures.
These material initiatives, it hopes, will help it prudently manage its business during the current business environment saving up to $50 million in 2020 and position it well for when the solar industry returns to strong growth. It is also reviewing all discretionary spending and other programs to further reduce costs in the near-term. As of now, it ‘remains comfortable’ with its liquidity position.
While the management confirmed the planned split into two independent publicly traded companies as being on track, expected to close by Q2/2020, it has withdrawn its previously provided fiscal year 2020 financial guidance (see SunPower Returns To Profitability In Q4/2019).
“Additionally, at this time, the company cannot fully assess the impact of the COVID-19 crisis in both its U.S. and international businesses. As a consequence, the company is withdrawing its previously provided fiscal year 2020 financial guidance. The company expects to provide additional details on its updated 2020 forecast on its first quarter 2020 earnings call in May,” stated the management.
Earlier this year, SunPower had said it will let go off around 3% of global workforce under its restructuring plans (see SunPower To Cut Down Global Workforce By 3%).