Summary by Futu AI
SolarEdge Technologies announced on November 27, 2024, the closure of its Energy Storage Division, resulting in a workforce reduction of approximately 500 employees, primarily in South Korea. This represents about 12% of the company's overall employee population, with dismissals expected over the first half of 2025.The company anticipates pre-tax charges of $81-99 million, including $40-49 million in asset-related and impairment charges, $30-37 million for inventory write-offs and non-cancelable purchase orders, and $4-5 million in severance costs. SolarEdge expects to offset all cash payments through the collection and sale of related assets, including its South Korean manufacturing facilities for battery cells and packs.The decision aims to focus on core solar activities and improve financial stability. Quarterly operating expense savings are estimated at $7.5 million, with full run rate expected by the second half of 2025. The closure does not affect the solar business sale of batteries for residential and commercial markets.
