Enphase Energy Reduces Workforce by 6% Amid Policy Changes Impacting Solar Demand
Enphase Energy is reducing its global workforce by 6%, impacting around 160 employees, due to anticipated declines in solar demand following the expiration of the federal 30% Residential Clean Energy Tax Credit. The company aims to lower its quarterly non-GAAP operating expenses and is implementing productivity enhancements through AI and automation, while also shifting to distribution-led coverage in select international markets. Affected U.S. employees will remain on payroll until February 16, 2026, with severance packages provided, as Enphase continues to pursue growth initiatives despite the layoffs.
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Enphase Energy is reducing its global workforce by approximately 6%, affecting about 160 employees, in response to a projected downturn following the expiration of the federal 30% Residential Clean Energy Tax Credit on December 31, 2025. The company aims to reduce quarterly non-GAAP operating expenses to $70 million-$75 million by Q3 2026, down from $80 million.
The restructuring includes enhancing productivity through AI and automation and transitioning to distribution-led coverage in Brazil, the Philippines, and South Africa. Employees in the U.S. will remain on payroll until February 16, 2026, with severance packages including a minimum of 13 weeks of pay.
Enphase expects to incur approximately $4.6 million in restructuring and asset impairment charges. The company continues to focus on growth initiatives despite the workforce reduction.
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