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Leading Solar Manufacturer Longi Cuts One-Third Of Jobs

By Nithya Bose in Business News, posted March 19, 2024

Chinese solar manufacturer Longi is cutting almost a third of its employees after a cost-cutting drive launched last year.

The measure included minor savings efforts like instructing employees to print documents only in black and white.

The company, which employed 80,000 people, now faces financial challenges amid a downturn in the renewable energy sector.

This industry-wide strain is partly due to the geopolitical upheaval following Russia's invasion of Ukraine in 2022.

It led to a scramble for energy resources in Europe and an expedited transition to renewable energy sources.

However, the surge in energy prices has subsequently inflated costs across the renewables supply chain.

It’s compounded by a shift in focus by oil and gas firms back to fossil fuel ventures due to higher profit margins.

This shift has forced renewable energy companies, including those in the solar sector known for their cyclical nature influenced by governmental policy, to halt projects and reduce their workforce in response to the changing economic landscape.

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China, the epicenter of global solar manufacturing, has witnessed intense competition among manufacturers due to increased factory outputs dedicated to solar technologies.

Longi has suspended investment initiatives and reduced product prices to stay afloat.

Earlier cost-saving efforts also included eliminating complimentary afternoon tea, restricting business travel budgets, and discontinuing free coffee in its Shanghai office.

The scale of job losses remains uncertain as internal mechanisms for tracking employee numbers have been disabled.

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