Longi's Solar Job Cuts Signal Industry Turbulence

Mar 19, 2024 02:17 PM ET
  • Longi Green Energy Technology Co. faces tough decisions in the competitive solar industry, cutting staff to stay afloat. Despite challenges, a rebound is possible by 2024.

China's Longi Green Energy Technology Co., the world's largest solar manufacturer, is cutting almost one-third of its staff to reduce costs due to overcapacity and intense competition in the industry. The company plans to trim up to 30% of its workforce, which totaled about 80,000 last year. Longi began layoffs in November, primarily affecting management trainees and factory hires, as the solar sector struggles with excessive capacity and price pressures.

The solar industry in China, which dominates global manufacturing, has faced layoffs and suspended investment plans recently. Longi, a leading wafer producer, had to cut prices significantly last year due to fierce competition. Despite financial pressures and job losses, the industry could see a rebound by late 2024 with consolidation and improved supply-demand balance. Longi, with substantial cash reserves, is well-positioned to weather the industry's challenges.

How is China's Longi Green Energy Technology Co. responding to solar industry challenges?

  • Longi Green Energy Technology Co. is cutting almost one-third of its staff to reduce costs in response to overcapacity and intense competition in the solar industry.
  • The company plans to trim up to 30% of its workforce, which totaled about 80,000 last year, with layoffs primarily affecting management trainees and factory hires.
  • Longi, a leading wafer producer, had to cut prices significantly last year due to fierce competition in the solar sector.
  • Despite financial pressures and job losses, the solar industry in China could see a rebound by late 2024 with consolidation and improved supply-demand balance.
  • Longi, with substantial cash reserves, is well-positioned to weather the industry's challenges and emerge stronger in the long run.
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Source:
bloomberg.com

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