Meyer Burger, the Swiss photovoltaic manufacturer, has announced a significant reduction in its European workforce. The company plans to cut its global staff from around 1,050 to approximately 850 by the end of 2025. This reduction will disproportionately affect Europe, as Meyer Burger simultaneously expands its production capacity in the United States.
The announcement coincides with a leadership shake-up: CEO Gunter Erfurt is stepping down, to be replaced by Frank Richter, who brings extensive experience in restructuring industrial enterprises. CFO Markus Nikles will also exit his role by the end of September.
The company's expansion plans in the U.S. have faced setbacks, particularly the unaffordable establishment of a new solar cell manufacturing site in Colorado. Consequently, solar cells for a new module factory in Alabama will continue to be sourced from Germany.
Despite the closure of its Freiberg site, Meyer Burger will retain its solar cell plant in Bitterfeld-Wolfen and its technology site in Hohenstein-Ernstthal. The European market is currently overwhelmed by cheaper Chinese solar modules, creating intense price pressure.
Meyer Burger's focus on the more lucrative U.S. market has not gone as planned, adding to its challenges. Analyst Bernd Laux from Zürcher Kantonalbank sees the job cuts as a drastic but necessary measure, although he questions whether it will be sufficient to halt the company's decline.
Despite the financial struggles, Meyer Burger aims for profitability by 2026 through increased production capacity and strategic agreements. The company's recent financials show a revenue of 135 million Swiss francs for 2023, with an EBITDA of minus 164 million Swiss francs, highlighting the urgency of its current restructuring efforts.
