Photovoltaic inverter maker Satcon Technology Corp. said it would cut 140 jobs worldwide, about 35 percent of its workforce, and close its Canadian facility in efforts to reduce costs and improve its financial performance. The company, which makes products used by businesses and utility companies to convert renewable energy sources into electrical power, has reportedly been hurt by subsidy cuts in Europe.
Under the plan, Satcon said the job losses and the closure would result in charges of approximately $2.8 million to $3 million, the majority of which are expected to happen between late 2011 and early 2012. The company expects to save $15 million to $17 million a year once the plan is implemented by 2Q 2012.
Satcon also plans to write down the value of certain non-cancellable supplier-held inventory, and expects to take a charge of about $20 million to $26 million.
The company is working to partner with a contract manufacturer to maintain production in Ontario for Satcon solutions to continue to satisfy the province’s feed-in tariff requirements.
Read more financial news