Smart energy giant SolarEdge to slash 900 jobs including 550 in Israel

Company says it is cutting 16% of its global workforce, with more than half of the layoffs at Herzliya headquarters; HP to fire 50 Israeli employees

SolarEdge Technologies' offices in Modiin, seen on January 21, 2022. (MagioreStock/
SolarEdge Technologies' offices in Modiin, seen on January 21, 2022. (MagioreStock/

Israeli-founded smart energy tech firm SolarEdge Technologies, Inc. announced Sunday plans to slash 16 percent of its global workforce in order to cut operating costs, in light of weak demand for its solar invertors.

Based in Herzliya and with US headquarters in California, SolarEdge — once the most valuable Israeli company on the New York Stock Exchange — said the reduction translates into layoffs of 900 employees, of which about 550 are in Israel.

The move is part of a restructuring plan following the discontinuation of manufacturing in Mexico, the reduction of manufacturing in China, and the termination of the firm’s light commercial vehicle e-mobility operations.

Most of the layoffs in Israel are at the company’s Herzliya headquarters, with the rest at a location in the Tsiporit Industrial Zone near Nof Hagalil in the north of the country, the Globes outlet reported.

“We have made a very difficult, but necessary decision to implement a workforce reduction and other cost-cutting measures in order to align our cost structure with the rapidly changing market dynamics,” stated SolarEdge CEO Zvi Lando. “We remain confident in the long-term growth of the solar energy market… These changes do not impact our strategic direction and priorities and we remain committed to continue to drive the renewable energy transformation.”

SolarEdge was founded in 2006 to make solar energy more affordable and widespread. It developed an inverter solution for harvesting and managing power in solar photovoltaic (PV) systems. It soared to a market cap of nearly $20 billion but has since slumped to a cap of just $3.8 billion.

Over the past year, SolarEdge shares plunged almost 80% as the company warned in October about “substantial unexpected cancellations” from European distributors. Shares fell from over $300 at the start of 2023 to $93 at the end of the year and have continued to slide, finishing last week at $69.11. In 2023 it was dropped from the S&P 500, where it had been listed since 2021.

Illustrative. Staff at HP Israel Customer Solutions Center (Photo credit: HP)

Separately, printing giant HP also announced that it is firing 50 of the 2,500 workers it employs in Israel.

The layoffs will be in the company’s HP Indigo Division, a leading developer of digital printing technology.

“As part of HP’s plans for efficiency and improving the response to our customers’ needs, we are required to make changes in the organizational structure that also mean the reduction of a number of standards in Israel,” the company said in a statement. “These are the most difficult decisions for any company. HP remains committed and continues to invest in its operations in Israel and in HP Indigo.”

The division was founded in Israel in 1977 and is headquartered in Ness Ziona.

In 2023, HP laid off 100 of its Israeli employees as part of a streamlining announced two years earlier under which it would trim up to 6,000 workers over three years. There have been layoffs in other countries besides Israel, mostly in the Indigo Division.

Pri Hagalil factory in Hatzor Haglilit (photo credit: Abir Sultan/Flash90)
Pri Hagalil factory in Hatzor Haglilit (photo credit: Abir Sultan/Flash90)

In another blow to the employment market, food producer Vita Pri Hagalil announced last week it would no longer produce frozen vegetables, though it will continue its frozen fries. Last August it already announced it was letting go of 25 workers and it is now expected to lay off another 53 out of the 120 left in the factory, the Israel Hayom daily reported.

Dropping frozen vegetables from its products is expected to have a severe impact on farmers in the north who provided the vegetables. The factory decided to close the line due to losses incurred as a result of imports from abroad that brought down the price of frozen vegetables on supermarket shelves, the report said.

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