Enphase Energy will lay off roughly 10% of workforce as part of restructuring plan

Enphase Energy will lay off 10% of its global workforce as part of a restructuring plan, the solar company disclosed in a regulatory filing on Monday.

Enphase manufacturers microinverters that convert solar energy into usable electricity. The company’s stock is down 53% this year as high interest rates have depressed demand, leaving the company saddled with inventory. Enphase has a market capitalization of $16.9 billion.

Enphase will also cease operations at contract manufacturing plants in Wisconsin and Timisoara, Romania and resize its other contract plants, according to the company. It will focus on manufacturing microinverters at contract plants in South Carolina and Texas.

Enphase said it will take a $16 million to $18 million hit from restructuring and asset impairment charges, most of which will be booked in the fourth quarter of this year.

The solar sector has had a brutal year across the board with the Invesco Solar ETF (TAN) down about 30%.