Largest solar manufacturer LONGi to lay off up to one-third of staff: Bloomberg

Chinese solar manufacturer LONGi, the largest in the world, is planning to lay off nearly one-third of its staff amid overcapacity and competition, Bloomberg News reports.

“Several people familiar with the matter, including some briefed by senior management” relayed the news to Bloomberg. The company has not officially announced the 30% reduction yet and said Bloomberg’s report is inaccurate, instead saying the number is closer to five percent. LONGi began layoffs in November, Bloomberg reports, but it’s unclear how many people have been laid off since then.

Solar faces an “increasingly competitive environment,” LONGi said in a statement provided to Bloomberg News. “In order to adapt to market changes and improve organizational efficiency, Longi is optimizing our workforce.”

The worldwide solar industry is grappling with similar market conditions. In January, SolarEdge Technologies, a provider of DC-optimized inverter systems, announced it was laying off 16% of its global workforce, or about 900 employees, with 500 of the affected employees working at the company’s manufacturing sites. The move followed SolarEdge’s discontinuation of manufacturing in Mexico, reduction of manufacturing capacity in China, and termination of its light commercial vehicle e-mobility activity. Later in January, Aurora Solar laid off 20% of its staff, or about 500 employees, after reportedly missing growth targets, Tech Crunch reported.

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In California, the California Public Utilities Commission (CPUC) made drastic reductions to Net Energy Metering — the program responsible for reducing the costs of going solar — by slashing the value of solar energy shared back to the grid by solar homes and businesses by 70-80%. Since the CPUC’s decision, the California Solar and Storage Association (CALSSA) says the solar industry has experienced devastating results in the form of business closures and layoffs.

A survey of California solar and storage companies found 17,000 jobs were lost by the end of 2023 due to the recent net metering changes, CALSSA said. The job loss represents 22% of all solar jobs in California. An additional 59% of residential solar and storage contractors anticipate further layoffs, and another 11% say they’re unsure. The CPUC’s changes left an uncertain future for solar businesses. Seventy percent of residential solar and storage contractors expressed concern about their business outlook.