Meyer Burger, a solar panel manufacturer, aims to reduce its workforce by approximately 19%.
Meyer Burger, a major player in the solar module manufacturing industry, is undergoing significant transformations. following the closure of a facility earlier this year, the company is now making further adjustments to its workforce. Primarily, changes are occurring in management, and many employees are predicted to lose their jobs by the end of 2025.
The ailing Swiss company announced that it will shrink its employee count from the current approximately 1050 to around 850 by the end of 2025. The majority of the reductions will take place in Europe, while growth is projected in the US. Meyer Burger is pursuing profitability by means of this restructuring.
Although the specific locations for the job cuts have yet to be determined, layoffs cannot be completely ruled out at German sites, according to Franz Richter, chair of the board of directors. However, he assured that the site in Saxony-Anhalt's Thalheim will remain and continue to function as the backbone of the company. The site in Saxony's Hohenstein-Ernstthal is essential for research and development. It's the administrative roles that are most likely to be affected by the cuts.
Investors showed concern and expressed skepticism, as the stock declined by approximately eight percent to 1.76 Swiss francs. Experts from Zurich Cantonal Bank commented that while the restructuring plan is sensible, it might have come too late to prevent Meyer Burger's gradual decline.
Management Changes
As part of its restructuring process, Meyer Burger has also witnessed modifications in its leadership team. The former CEO, Gunter Erfurt, stepped down and will depart from the company. Richter, who will now lead the management, shared that Erfurt made this decision himself. As well, the chief financial officer, Markus Nikles, is leaving the company. Temporarily, Ralf Hermkens (USA) and Frank Zimmermann (Europe) will report to the board of directors for financial matters. The trio will initially concentrate on swiftly restoring profitability. Various options are being reviewed to cover the remaining financing gap.
The objective is to achieve an operating result (EBITDA) within the mid-double-digit million range at a turnover of 350 to 400 million Swiss francs by 2026. The strategies are based on the already prevalent production capacities and existing purchase agreements.
For years, Meyer Burger has been incurring losses. In 2023, the company reported an EBITDA loss of 164 million Swiss francs on revenue of 135 million Swiss francs. The board initially aimed to move the majority of its production to the US but had to shelve those plans due to insufficient financing options. Earlier this year, they had also closed what they claimed to be Europe's largest solar module production site in Saxony's Freiberg.
Even amidst these challenging times, Meyer Burger remains committed to harnessing energy from solar energy. With the restructuring, the company aims to increase its focus on growth in the US, where it anticipates significant opportunities in solar energy.
The new leadership team, under Franz Richter's leadership, is targeting a substantial reduction in losses, aiming for an operating result (EBITDA) within the mid-double-digit million range by 2026, while maintaining revenue in the range of 350 to 400 million Swiss francs, primarily through the utilization of existing production capacities and purchase agreements.
