SolarEdge, one of the largest cleantech companies to grow out of Israeli high-tech, is launching another round of layoffs. According to Globes, the company is cutting about 10% of its workforce, about 200 people, and according to Calcalist, 50 to 60 of those affected are in Israel.
Another round of layoffs
This is not the first round. Globes calls it the fourth round of layoffs since January 2024, and Calcalist calls it the fifth in under three years. Previous rounds cut about 900 employees in January 2024, about 400 in July 2024 and about 500 in November 2024, when the company also shut its storage operation in South Korea.
Why now
The layoffs follow a relatively positive second quarter: according to Globes, revenue rose about 20% to $346 million and the company returned to non-GAAP operating profit. But according to Calcalist, the industry still faces weak demand for residential solar in the US and excess distributor inventory in Europe, and SolarEdge keeps adjusting its cost structure to the new reality.
What happened to SolarEdge
A few years ago, SolarEdge was one of Wall Street's most successful stocks and a source of pride for Israeli tech, with inverters and optimization systems for solar panels sold worldwide. Since then, the slowdown in residential solar has hit its revenue hard, and the company has gone through repeated cuts to adapt to a smaller market.
What it means for tech workers
The SolarEdge layoffs join a series of cuts at Israeli tech companies in recent weeks, such as at Fireblocks. At the same time, AI and cybersecurity companies keep hiring and raising money. The Israeli tech job market is splitting: people in the hot fields are in high demand, while other areas keep shrinking.
