SolarEdge Technologies (NASDAQ:SEDG) revealed on Sunday plans to cut its workforce by approximately 16%, affecting around 900 global employees, as part of its cost reduction efforts. Following this announcement, the company's shares increased by 6% intra-day today.

This workforce reduction is in line with several other cost-cutting measures SolarEdge has recently undertaken. These include shutting down manufacturing operations in Mexico, scaling back production capacity in China, and discontinuing its light commercial vehicle e-mobility division.

In November, the company had to revise its revenue forecast for the fourth quarter of 2023 downwards, attributing this to lower demand for its solar inverters. SolarEdge had initially expected Q4/23 revenue to be around $325 million, a significant decrease of 55% from Q3 and a 64% drop from the same period the previous year. However, analysts are now projecting Q4 revenue to be about $371 million, with the company likely to report a loss of $1 per share.