SolarEdge announced on Wednesday (27) that it will close its energy storage division, according to statement released to investors.
The decision will lead to the layoff of about 500 employees, most of them in South Korea, and is expected to generate quarterly savings of approximately $7,5 million in operating expenses.
The company also said it intends to sell assets related to the closed division, including battery cell and pack manufacturing facilities.
However, the measure will not affect the sale of batteries to the markets C&I (commercial and industrial).
“The decision to close our energy storage division was the result of a careful analysis of our business portfolio and product lines, industry trends and the competitive environment,” said Fada Ronen, interim CEO of SolarEdge.
The executive highlighted that the decision is aligned with two strategic priorities of the company: ensuring financial stability through cost reduction and focusing on core business lines, such as solar energy, storage and energy management capabilities.
“I would like to thank the employees of our energy storage division for all their efforts in building this business,” said Ronen.
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