German solar inverter manufacturer SMA Solar Technology AG has announced plans to reduce its global workforce by 350 positions by the end of 2026.
The decision is part of an expanded restructuring and transformation programme aimed at addressing weak market conditions and intense price competition in the residential and commercial solar sectors.
SMA Solar Job Cuts Focused on Home & Business Solutions Division
SMA Solar will eliminate approximately 300 full-time positions in Germany and 50 roles internationally, primarily in Asia and South America.
The company has clarified that no U.S.-based jobs are affected by this round of layoffs.
These reductions follow an earlier announcement in late 2024, when SMA revealed plans to cut 1,100 jobs as part of its initial restructuring phase.
The current round of job cuts is concentrated within the Home & Business Solutions (HBS) division, which has been underperforming due to declining residential installations and shrinking margins.
SMA has already begun discussions with employee representatives, with formal negotiations expected to conclude by November 2025.
The company will begin implementing the layoffs in January 2026.
Market Conditions Driving Strategic Shift
SMA’s leadership cited persistently weak demand and intense price pressure in the residential and commercial solar markets as key drivers behind the restructuring.
CFO Kaveh Rouhi noted a significant drop in new installations in the residential sector compared to 2024, particularly in Germany, which remains SMA’s core market.
In contrast, the company’s Large-Scale & Project Solutions business is performing well, prompting SMA to shift focus and resources toward this segment.
CEO Jürgen Reinert emphasized the need to restore competitiveness by concentrating on SMA’s core strengths, including cybersecurity, product quality, and compliance with international and national standards.
Cost-Saving Measures and Operational Adjustments
SMA expects the restructuring to generate over €100 million in annual savings, supplementing the €150–€200 million savings target announced in 2024.
To achieve this, the company is implementing several operational changes:
- Optimizing R&D spending by consolidating product lines and leveraging its Competence Centre in India
- Adjusting production strategy by reducing vertical integration and expanding in-house manufacturing capacity in Poland
- Streamlining service operations to improve turnaround times and reduce costs
- Exiting unprofitable markets and internationalizing operations to balance regional performance
Chief Transformation Officer Olaf Heyden, appointed in February 2025, stated that while the original savings goals are within reach, further adjustments are essential to maintain long-term sustainability.
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