SunPower To Cut 2,500 Jobs In Restructuring, Book Up To $275 Million In Charges Through 2017

SunPower Corp. said Wednesday it is planning to cut 2,500 jobs, or 25% of its global workforce, as part of a restructuring aimed at cutting costs and positioning the solar company for growth. The company will close its 700-megawatt Fab 2 facility, reduce 2017 annual operating costs to less than $350 million, decrease 2016 inventory to delever its balance sheet, cut 2017 capex by more than 50% to about $100 million and continue to invest in next generation cell and module technology. The company expects to incur total restructuring charges of $225 million to $275 million through end 2017, 30% of which is expected to be in cash. Shares were up slightly premarket, but are down 70% in the year so far, while the S&P 500 has gained 8%.