Solar energy giant SCISHOW to cut 1,000 jobs, hire 1,500 in solar energy industry
Solar energy firm SCISHow announced Thursday that it will cut 1.5 million jobs in its solar energy business, including 1,400 in the US, in a bid to bring down costs.
“In a bid for cost-efficiency and profitability, we are making some significant changes to our business and will be shutting down operations as a result,” SCISHo wrote on its blog.
The company, which was spun off from SunEdison, will be focusing on new businesses and projects in its home market, including in California, New Jersey, Virginia and Illinois.
SCISHower, based in North Carolina, will now focus on projects and business development in those states.
“This is a major shift for us, as it will allow us to focus on our growth in the state of North Carolina and bring jobs back to our home state of SC,” said Mark Schatz, chief executive of SCISHowa, which has a $25 billion market cap.
“Our team is excited about the new challenges ahead, and looking forward to building upon our recent success with solar.”
The company announced its announcement last week.
“We have made some significant decisions to align our business to better compete in the marketplace and accelerate our expansion,” Schatz wrote.
SCishow’s stock was trading at $10.27 Wednesday, down more than 4% from its record high of $26.86 a year ago.
SCIENCE CHANGES Solar energy has become a hot commodity as China’s government has stepped up its efforts to push the technology onto the world’s most populous nation.
Solar energy was one of the main reasons why China’s solar power capacity rose by more than 40% last year, according to Bloomberg New Energy Finance.
The technology is also gaining traction in the developing world.
“The world is rapidly expanding its solar market.
The cost of solar is rising and it’s becoming more competitive with other forms of energy,” said Michael A. Devereaux, director of global solar research at GTM Research.
“A company like SCISHōn is likely to be one of many to follow suit in coming months.” “
While SCISHowan is not the first company to announce it will shut down its solar operations in the United States, it is the first to announce this action,” he said.
“A company like SCISHōn is likely to be one of many to follow suit in coming months.”
The new plan comes on the heels of a US Solar Council survey finding that just 23% of US solar energy customers think solar power will be a good thing in the near term, compared to 47% who think it will be “not that good” and just 28% who expect the opposite.
Solar power is projected to increase to 30% of the US energy mix by 2035, up from 12% now.
The SCISHoon CEO said the company is currently focused on “big data” and “data-driven innovation” in the solar energy space, adding that “we are still working through the logistics of this change.”
SCISHowns a $1 billion investment in SolarCity, the first solar installer in the country.
The California-based company has already invested $4 billion in its local solar markets.
SCISEower has a deal with SunEdision to buy and operate solar power projects in Virginia, Maryland, North Carolina.
SCISo has a pending deal with General Electric for solar power in North Dakota, according the company.
“These changes are consistent with our strategy of accelerating and scaling our growth,” Schitz said.
SCIZO, the second-largest solar power company in the world, was valued at $8.8 billion in 2012.
It has an investment in SunEdisons SolarCity unit, and a $4.7 billion solar investment from SunPower.
SCISMo was valued $2.6 billion in 2013.
SCITO was valued by Forbes at $1.3 billion in 2010.
SCIVE is owned by a group of private equity firms including Morgan Stanley, Guggenheim Partners and TPG Capital.
SCIKA, the third-largest provider of rooftop solar in the U.S., was valued for $1 million in 2011.
The firm, which operates solar power facilities in the Chicago area, is owned jointly by SunEditions and SunPower, which is part of the $7.8-billion GE group.
SCKITO is owned partly by private equity firm Cerberus Capital Management and partly by the German government.
SCNOVO, an energy firm based in Japan, was the first Japanese company to purchase solar power from SCISHotea in 2015.