SolarEdge to Lay Off 10% of Staff as Market Pressures Persist
Key Facts
SolarEdge is laying off about 200 employees, equivalent to 10% of its workforce, in a new cost-cutting round, according to a report published by Globes on October 26, 2026. The report cited market sources as saying that the number of jobs to be cut in Israel will be limited to a few dozen. The decision comes as the company continues to face slowing demand and excess inventory at distributors, despite recording improved revenue and margins in the second quarter. The company returned to non-GAAP operating profit in that quarter for the first time since the second quarter of 2023. The latest layoffs put renewed cost-cutting efforts alongside signs of an operational recovery that have yet to ease market pressures.
The current round is the latest in a series of cuts at the company over less than three years. In its 2024 sustainability report, SolarEdge said its restructuring plan included workforce reductions in January, July and November 2024, followed by another in January 2025. By the end of 2024, total headcount had fallen by about 30% compared with the end of 2023. In a regulatory letter attached to a filing with the Securities and Exchange Commission in January 2025, the CEO said expense reductions remained necessary despite the cost-saving measures and layoffs of the previous year. That round affected about 400 employees, alongside a review of departmental cost structures and limits on discretionary spending. The currently announced round affects about 200 employees, according to Globes, with the expected number in Israel remaining at a few dozen, according to market sources.
Financially, the company reported GAAP revenue of about $346.2 million in the second quarter of 2026, up 19.6% from the second quarter of 2025 and 11.5% from the first quarter of this year. Its GAAP operating loss narrowed to $16.0 million, compared with a loss of $115.5 million a year earlier. On a non-GAAP basis, operating results turned to a profit of $10.2 million, after a loss of $48.3 million in the year-earlier period. The CEO said the company had returned to non-GAAP operating profitability for the first time since the second quarter of 2023. He added that the company continued to generate positive free cash flow, describing the results as an important milestone in its recovery.
GAAP gross margin rose to 27.5% in the second quarter of 2026, from 22.0% in the first quarter and 11.1% in the second quarter of 2025. But the company said the quarter’s results included a benefit of $13.3 million related to tariff matters under the IEEPA law. In its guidance for the third quarter, it set revenue at between $310 million and $340 million, and non-GAAP gross margin at between 22% and 26%. It also forecast non-GAAP operating expenses of between $86 million and $91 million. Globes said third-quarter revenue guidance came in below analysts’ expectations and the stock fell more than 20% after the results were announced in August. Guidance below market expectations highlights the continued difficulty of turning the second quarter’s improvement into a stable growth trajectory.
Globes attributes the challenges facing the company to slowing demand in key markets, particularly the residential sector, and excess inventory at distributors. The CEO said strong demand in Europe, alongside robust performance in the U.S. commercial and industrial sector, more than offset weakness in the U.S. residential market. The company is also working on energy solutions aimed at AI infrastructure, according to Globes. In its second-quarter results, the CEO pointed to the company’s focus on expanding the Nexus platform and developing the SolarEdge SST system for AI factories. The mix of regional and sector demand remains central to explaining the contrast between improved revenue and profitability on one hand, and continued cost-cutting measures on the other.
The company’s stock, listed under the ticker SEDG, closed at $33.32 on October 23, 2026, according to EL7 data. Globes had linked the stock’s drop of more than 20% in August to the results announcement and quarterly guidance. The company’s third-quarter guidance sets a revenue range of between $310 million and $340 million, alongside ranges for margin and operating expenses. At the same time, the CEO said the company is focused on expanding the Nexus platform and developing SolarEdge SST for AI factories. These priorities will remain part of the operational landscape as the company carries out its latest round of layoffs.