SunEdison planning 10% cut to headcount - report

SunEdison Inc (NYSE:SUNE) will reduce its workforce by roughly 10% in a bid to optimise its business, a move that comes after a 70% drop in the US-based renewables major’s market cap.

The company will be integrating acquired businesses and eliminating redundancy, says a memo from September 30 seen by Greentech Media (GTM). The plan also envisages simpler management structures and a narrowing of SunEdison’s geographic scope. The he green energy research and news provider quoted sources within the company as saying that it is also looking for buyers for portfolios of projects.

The new strategy is to be presented to investors this week.

According to GTM, SunEdison’s market cap has plunged to USD 2.6 billion (EUR 2.3bn) now from USD 9 billion in July. The stock price of its first yieldco, TerraForm Power Inc (NASDAQ:TERP) has also halved over the summer. In August SunEdison reported a net loss attributable to shareholders of USD 635 million for the first half of 2015.

For many months the wind and solar company has been focusing on large acquisitions in various global markets for it and its two yieldcos. One of the most widely criticised deals was the USD-2.2-billion takeover of US residential photovoltaic (PV) systems installer Vivint Solar (NYSE:VSLR).

(USD 1 = EUR 0.890)

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