SolarCity, U.S.’s leading provider of rooftop PV systems for household, is reported to lay off 108 employees from offices in California. This is not far from Tesla announced to acquire it.
SolarCity’s financial results for the second quarter of 2016 were flat. The quarter’s operating loss was US$194 million, while the net loss was US$250 million. The company also revised down installation guidance for the year 2016 from 1~1.1GW to 900~1,000MW.
Furthermore, SolarCity’s board of directors have agreed to cut salaries of CEO Lyndon Rive and CTO Peter Rive, from US$275,000 to only US$1. The salary reduction was announced in the financial reports for 2Q, which also indicated that the company will take US$3~5 million for restricting for merger with Tesla. The same report revealed possibility of job cut.
As for the job cut plan, SolarCity will lay off 80 employees from its San Mateo headquarters and another 28 from offices in San Francisco, according to documents obtained by PV Magazine. Employees to be laid off include positions for administrative, IT, marketing, logistics, and others. The layoffs are expected to begin on October 19, said PV Magazine.
SolarCity employs approximately 13,000 workers across the United States, and the 108 job cut represents less than 1%. However, this may still be a sign that SolarCity is trying to revive from continuous business loss.
(photo source: SolarCity Blog)