CNG.09.01.16 Solar
First Solar is one of a number of companies that have reported slumping sales of late. Courtesy of First Solar

Why First Solar Is Cutting 1,600 Jobs

Nov 16, 2016

First Solar, the largest U.S. solar equipment maker, said it would slash about 1,600 jobs, or 27% of its global workforce, to cut costs as it transitions to production of Series 6 modules.

The company also forecast on Wednesday 2017 net sales of $2.5 billion-$2.6 billion, well below analysts' average estimate of $2.98 billion, according to Thomson Reuters (tri).

First Solar (fslr) said the restructuring is expected to result in pretax charges of between $500 million-$700 million, anticipated primarily in 2016.

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The company warned earlier this month of significant challenges next year due to a 30% slide in prices, driven by lower demand in China and the resulting oversupply of panels globally.

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