Leading PV inverter manufacturer, SMA Solar Technology is slashing a further 1,000 jobs, primarily in Germany due to lower expected sales in 2015 from its traditional German and European markets.
SMA Solar had previously announced around 600 full-time job cuts in a bid to return to profitability. The company noted that a total of 1,600 job cuts would be implemented by the end of June, 2015.
The company said that around 1,300 full-time jobs in Germany and approximately 300 full-time positions in international locations would be cut. SMA Solar had 4,667 full-time employees at the end of 2014.
“We expect to see high price pressure on the global photovoltaic market still in the coming years and a further decline in demand in Europe, particularly in Germany” said, Pierre-Pascal Urbon, chief executive officer of SMA Solar. “By contrast, the non-European markets will develop positively. This means, that although the market measured in gigawatts will continue to grow in the medium term, we expect to see a global decline when measured in euros. To return to profitability in this environment, we want to make adjustments to SMA’s structures in line with the lower sales level. This is the only way that we can break even with reduced sales.”
The company noted that it expected to report 2014 revenue of €790 million and a loss approaching €115 million.
“However, the effects of these measures will not emerge until the second half of the year at the earliest, meaning that SMA will probably not yet return to profitability in the current fiscal year,” added Urbon.
This article was originally published on Solar Power Portal's sister site, PV Tech