SolarEdge signs deal (company Twitter post)
Israel Startup Nation is seeing massive layoffs. SolarEdge, HP Indigo and Strauss Group are all letting blocks of people go after a stay of execution was in place due to the Iron Swords War in Gaza.
The layoffs are not the result of a financial crisis caused by the war. They would have come anyway, but the Israeli firms did not want to enact them in the wake of the Barbaric Hamas attack of October 7. So, the act that they are coming now could actually be a good sign as it suggests that Israelis are ready to move forward with business as usual after more than three months of war.
SolarEdge, an Israeli producer of alternative energy resources, lost 70% of its value since the start of 2023– or $11 billion from its market cap. But it did have a bit of a bounce back when the company’s shares increased by 30% in December. However, it is expecting a 55% drop in revenue for the fourth quarter of 2023 from the third quarter.
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Now comes word that SolarEdge is laying off 900 employees, 550 of whom are based in Israel, or about 16% of its 5,500 person workforce.
Explaining the layoffs, Zvi Lando, Chief Executive Officer of SolarEdge, said, “We have made a very difficult, but necessary decision to implement a workforce reduction and other cost-cutting measures in order to align our cost structure with the rapidly changing market dynamics. We are making every effort to treat our departing colleagues with respect and gratitude for their contributions and support them in their transition.”
Lando added, however, that his firm remains “confident in the long-term growth of the solar energy market and our leading position in the smart energy space. These changes do not impact our strategic direction and priorities and we remain committed to continue to drive the renewable energy transformation while providing best in class technology and support to our customers.”
American firm HP Indigo is cutting another 50 employees in Israel a year after letting go of 100.
“As part of HP’s plan to improve efficiencies and better serve customer needs, we are making some adjustments to our current structure that impact a small number of local positions,” HP Indigo said in a statement. “These are the toughest decisions any company makes, and we are treating everyone with care and respect, including financial support and outplacement services. HP remains committed to our HP Indigo team and continues to invest in our local business in Israel.”
Finally, Israel’s Strauss Group is firing 100 people and also raising prices. The price hike can be attributed to a general increase in prices seen in Israel due to a drop in the Shekel’s value and a disruption in the supply chain because of the war in Gaza.
“We are aware of the difficult situation, and therefore the price rises are the minimum necessary in the current business reality,” said Strauss Group president and CEO Shai Babad. “The focusing and streamlining processes within the company will enable us to continue investing in infrastructure and future growth. In 2023, we invested hundreds of millions of shekels in our plants and supply chain all over Israel, and we shall continue with that this year, out of a commitment to ensuring nutrition security in general, and in wartime in particular.”
