Enphase Energy, a solar energy technology company based in Petaluma, on Sept. 22 reported layoffs and other restructuring and cost-cutting moves intended to save the struggling company $20 million annually.
The company, which has about 500 employees, will cut 11 percent of its global workforce.
The restructuring will cost about $3 million in the third quarter of 2016, including $1.7 million in cash severance payments and $1.3 million for non-cash write-offs of property and equipment. The restructuring is expected to be completed by the end of the year.
Enphase reported net losses of $36 million through the second quarter of 2016. The company had accumulated deficit of $219 million.
“We made these decisions as part of our efforts to increase our competitiveness in an environment where industry dynamics are constantly evolving,” said Paul Nahi, president and CEO.
Enphase expects revenue for the third quarter of 2016 between $87 million and $93 million, and for the fourth quarter between $90 million and $100 million.
The company is looking to long-term growth with integrated solar-electric panels that have battery storage, called the Enphase Home Energy Solution. Enphase plans to launch a battery-storage system soon.
“Pricing pressure in our U.S. and international businesses increased affecting our year-over-year revenue growth,” Nahi said during a call with investment analysts last quarter. “However, we continued to drive the adoption of the microinverter technology by providing our customers with more features and functionality and ever-increasing quality and reliability, all while we continue to simplify design and installation and we did all this at very competitive prices.”
The company has shipped about 11 million microinverters used in about 460,000 residential and commercial energy systems in 100 countries.