Solar-Fabrik agrees 65 job cuts with workers’ council

Troubled German photovoltaic (PV) module maker Solar-Fabrik AG (ETR:SFX) said on Thursday it has agreed with the workers’ council to axe 65 jobs in Freiburg in order to raise its chances to attract an investor.

With this move, Solar-Fabrik will achieve a “massive” reduction in production and competitive overhead costs. Following the job cuts, the company will employ a total of 90 people. Those who are to part with their positions will be informed by the end of the month.

Earlier in May, Solar-Fabrik announced that the local court in Freiburg has revised its prior decision and allowed the company to continue its insolvency proceedings under self administration. Both the creditors' committee and the self administration have advised that this mode gives Solar-Fabrik a greater chance of finding investors.

The firm filed for self-administered insolvency proceedings in February. It said then the move was prompted by the possibility of an insolvency situation occurring during the second quarter due to а liquidity shortage. The module maker has been hit by low market demand and the corresponding price pressure.

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