SunPower has announced that it will be undergoing restructuring measures aimed at lowering costs. This news caused a 16% drop in the company’s shares in premarket trading.
As part of this plan, SunPower will be cutting its workforce by approximately 1,000 employees and winding down its SunPower Residential Installation locations and closing SunPower Direct sales. The company expects to incur charges of around $28 million related to severance benefits, early contract terminations, and certain write-offs as a result of these changes.
In a letter to employees, Principal Executive Officer Tom Werner stated that these steps are being taken to simplify the business structure, move away from areas where profitability has been unsustainable, and improve financial controls. By doing so, the company hopes to create a more efficient and sustainable business model for the future.