- SunPower is pressing ahead with its cost-cutting plans, now announcing job cuts
- Staff will be laid off as the company shuts down the Direct Sales business and winds down SPRI locations
- It will rely on full-service installation partners, certified dealers and Blue Raven Solar for pipeline operations
US residential solar and energy storage installer SunPower Corporation is undertaking additional measures to achieve financial viability and move to a low fixed-cost model. It involves letting go of close to 1,000 employees in the coming days and weeks.
In a note to the employees, SunPower’s Principal Executive Officer Tom Werner said the company will transition away from areas it has been unable to sustain profitable operations in.
This includes winding down its SunPower Residential Installation (SPRI) locations and closing SunPower Direct Sales business verticals. Owing to this, it will cut down staff.
Instead, it plans to focus on Dealer Network and installation partners, and invest in the New Homes business. The management has decided to have all its pipeline operations handled by its full-service installation partners, certified dealers and Blue Raven Solar. SunPower acquired Blue Raven Solar in October 2021 (see Blue Raven Acquired By SunPower In US).
A slowdown in the residential solar PV demand in the US, attributed majorly to high interest rates and NEM 3.0 transition in California, has compounded problems for SunPower. It reported an adjusted EBITDA loss as well as a net loss for FY 2023 (see SunPower Suffers -$247 Million GAAP Net Loss In 2023).
In the note, Werner shared, “While we worked hard to avoid this outcome, the market has been slower to recover than we initially expected. Additionally, we have dedicated resources to improving our financial controls, and will continue to do so. We believe this shift in our strategy is necessary to safeguard the company’s future.”
