Enphase Energy (NASDAQ:ENPH) announced today a significant workforce reduction of approximately 10%, affecting both contractors and employees, as part of its restructuring plan. This plan aims to enhance operational efficiencies, cut operating costs, and align the company's workforce and cost structure with the current market demands and strategic priorities. The company's stock is down 53% year-to-date.
The restructuring will also involve ceasing operations at its manufacturing facilities in Timisoara, Romania, and Wisconsin, United States. Enphase will consolidate its microinverter manufacturing in the United States, focusing on two existing contract manufacturing sites in South Carolina and Texas. Equipment from the closing facilities will be transferred to these U.S. locations.
Enphase anticipates incurring $16 million to $18 million in restructuring and asset impairment charges, with about $7 million in cash expenditures. The majority of these charges are expected in the fourth quarter of 2023, but they are not projected to materially impact the company's financial results or condition.
The workforce restructuring should be substantially complete within the first half of 2024. Similarly, the manufacturing adjustments are expected to conclude within the same timeframe.
By the first half of 2024, when these restructuring actions are expected to be fully implemented, the company forecasts its non-GAAP operating expenses to be reduced to a range between $75 million and $80 million per quarter.