SunPower (SPWR) in Major Restructuring: The solar company announced a brutal workforce reduction of 1,000 employees, representing a staggering 26% of its global staff. This news comes amidst a strategic shift away from residential solar installations, a move CEO Tom Werner claims is necessary for “financial viability.”
Direct Sales Shutter and SPRI Wind Down: SunPower will permanently close SunPower Direct, its direct sales arm, and dismantle its SunPower Residential Installation (SPRI) operations. These closures signal a significant retreat from the residential installation market, where SunPower was once a major player.
Shifting Gears: Focus on Partner Network: With its direct business model sidelined, SunPower will now rely entirely on its network of dealers and installation partners like Blue Raven Solar. These partners will manage the entire customer journey, from pre-installation to system activation. SunPower assures a smooth transition with minimal disruption to customer timelines and promises continued commitment to quality and service standards.
Dealer Network and New Homes Remain Core: SunPower will prioritize its established dealer network, aiming to leverage their expertise and existing customer relationships. Additionally, the company plans to reinvest in its burgeoning New Homes business. Existing customer service operations, including maintenance and warranty fulfillment, will remain in place.
Solar Market Shakeup: SunPower’s dramatic layoffs and strategic pivot raise questions about the health of the residential solar installation market. Their exit could be a harbinger of industry consolidation or a calculated move to pursue higher-margin segments. We’ll be closely monitoring how this news impacts SunPower and the broader solar industry.
