SunPower announced it is implementing a number of material initiatives to help the company manage its business during the current industry uncertainty relating to the COVID-19 pandemic. The company believes these actions will position it well for when the solar industry returns to strong growth.
SunPower has immediately reduced management salaries, froze all hiring and merit increases, and is reducing capital expenditures. The company expects these actions will result in up to $50 million in savings this year.
SunPower still plans to split its business into two independent companies — one for North American installation services (SunPower) and the other for manufacturing of solar panels (Maxeon). The deal is expected to close by the end of the second quarter of 2020 and is dependent on the timing of regulatory approvals and the satisfaction of certain closing conditions.
“During these unprecedented times, our primary focus remains on the safety and well-being of our employees, working closely with our partners and continuing to serve our customers,” said Tom Werner, SunPower CEO and chairman of the board. “We are committed to taking every action within our control to manage our business and serve our customers both now and when the industry recovers. We have the industry’s best technology and are continuing to invest in our innovative product suite including our storage and digital solutions. Finally, we remain on track to complete our planned company split into two independently focused pure-play solar companies by the end of the second quarter.”
News item from SunPower