NIESTETAL (dpa-AFX) – Inverter manufacturer SMA Solar is expanding its cost-cutting program as previously announced, planning to eliminate hundreds of jobs. By the end of 2026, 350 positions are set to be cut, 300 of which are in Germany, according to company CEO Jürgen Reinert in a statement released Thursday in Niestetal, Hesse. The move aims to generate additional annual savings of more than EUR100 million. The measures will primarily affect the residential and commercial segments. Following the news, SMA shares gave up a portion of their recent gains.
Reinert cited immense price pressure in the business. Incoming orders have been declining. As early as the beginning of September, SMA had announced, as part of a profit warning, that it would need to make deeper cuts.
"While the business with solutions for large-scale power plants is developing very well and we have been able to expand our market position, we are currently experiencing a sharp decline in installation rates in the residential sector compared to 2024 – particularly in our core market of Germany," said CFO Kaveh Rouhi. The product portfolio is to be realigned, with the company also planning to focus on profitable markets and adjust the depth of value creation for certain products. The development center in India is set to play a larger role.
The inverter group has been grappling for some time with sustained weak demand and competitive pressure from Asian manufacturers. As early as May, SMA had become more cautious in its outlook for the year due to worsening conditions and volatile U.S. tariff policies.
