Skip to main content

SunEdison to layoff 10% of its workforce as investors question its strategy

According to a new report from GTM on Sunday, SunEdison sent out an internal memo last Friday to announce an important restructuring process which will include laying-off about 10% of the company’s workforce. The restructuring comes amid investor concerns about the company’s strategy which has been “all over the place” lately. Most notably, the company’s acquisition of the residential solar installer Vivint for $2.2 billion earlier this summer.

The decision to buy a residential solar provider was out of SunEdison’s core business, which mostly consist of developing utility-scale solar projects. Now the company might have to sell some of these projects in order to get rid of mounting debts (~$10 billion).

GTM reports that “teams within SunEdison” are tasked with looking at selling-off portfolios of projects.

The company’s stock plunged by 72% during the last 3 months – starting not long after the company purchased Vivint.Monday morning the company sent out a press release announcing the restructuring process to investors. They justify the layoffs as a way to “simplify its business structure by removing duplicative activities created as a result of recent M&A activities and business growth”. The company will also focus on “high profit-potential markets” which they identify as the U.S, India, China and Latin America.

SunEdison’s stock increased by 4% in pre-market trading following the press release,

CEO Ahmad R. Chatila and CFO Brian Wuebbels are scheduled to discuss the new strategy in an investor presentation Wednesday, October 7.

FTC: We use income earning auto affiliate links. More.

Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

Comments

Author

Avatar for Fred Lambert Fred Lambert

Fred is the Editor in Chief and Main Writer at Electrek.

You can send tips on Twitter (DMs open) or via email: fred@9to5mac.com

Through Zalkon.com, you can check out Fred’s portfolio and get monthly green stock investment ideas.