SunEdison to Cut About 1,000 Jobs
October 06 2015 - 10:00AM
Dow Jones News
Renewable-energy company SunEdison Inc. plans to shed some 15%
of its workforce as part of a restructuring plan following recent
acquisitions and amid concerns over market conditions, the company
said in a regulatory filing.
The Missouri-based company also said in the filing late Monday
that it will face total charges linked to its restructuring plan of
between $30 million and $40 million through the first quarter of
2016.
The company had about 7,300 employees, according to recent
filings, so these job cuts would apply to around 1,000
employees.
SunEdison said the charges would primarily consist of severance
and other benefits to terminated employees. Further details of the
plan are expected Wednesday during a conference call with company
executives.
Analysts for J.P. Morgan said in a client note Tuesday that they
expected SunEdison to reduce expenses by as much as 30% by the
middle of 2016, from operating expenses of about $975 million in
2015.
"Mostly this expense containment will come from reduced M&A
and business development resourcing levels, reduced geographic
scope ... and integration/rationalization of acquisitions," Paul
Coster of J.P. Morgan said in the note.
He added that there were market concerns over SunEdison's
near-term growth prospects in the face of over $4.5 billion of
staggered recourse debt repayments due in coming years.
In a related press release, the company said it would focus on
high profit-potential markets such as the U.S, India, China and
Latin America, among other actions.
In June, the company said that it plans to invest $15 billion in
India by 2022 with company officials saying that they expect growth
in the next 15 years to be centered in developing nations,
especially India and China.
In addition to its own $15 billion plan, SunEdison earlier this
year also agreed to invest about $2 billion in a joint venture with
India's Adani Group to build a factory to manufacture equipment for
solar power plants.
Last month, SunEdison agreed to acquire a 33% interest in a
portfolio of solar assets from Dominion Resources Inc. for roughly
$300 million. Under the agreement, SunEdison has an option to
acquire the remaining stake in the portfolio, which includes 24
projects in California, Connecticut, Georgia, Indiana, Tennessee
and Utah.
Shares of SunEdison were down 1.3% premarket Tuesday.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 06, 2015 09:45 ET (13:45 GMT)
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