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As Green Subsidies Dry Up, Green Jobs Go Up In Smoke

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Christoph Steitz, Reuters

SMA Solar, Germany’s biggest solar company by revenue, said it will cut 12 percent of its workforce after competition from Asia and a decline in Europe’s solar sector forced it to lower its outlook for sales and profit.

The 600 job losses by the end of 2015 are SMA Solar’s second major round of layoffs in as many years. The company has been badly hit by falling solar power subsidies in Europe, most notably in its home market Germany, where the company makes about 28 percent of its sales.

SMA Solar shares were down 12.3 percent at 22.755 euros by 11:00 BST on Wednesday, their lowest level in almost seven months and the fifth-biggest decliner in Germany’s main stocks index .PL.DE.

The company’s profit warning follows that of German peer SolarWorld which on Monday said it would not reach its sales target this year, pointing to weak demand in its core home market.

“Particularly in the core markets in Europe, demand has collapsed even further than expected due to further cuts in subsidies,” SMA Solar Chief Executive Pierre-Pascal Urbon said in a statement on Wednesday.

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