PV crisis: the biggest PV panels producer starts to lay out employees

Longi Green Technology Energy Company, the world’s largest photovoltaic company, has announced that it will lay off about 5 percent of its employees. Earlier alarming notices had circulated that 30% of employees were to be laid off, which, fortunately, have been debunked.

According to reports from Singapore’s ZaoBao, Longi Green Energy, a Chinese company based in Xi’an, Shaanxi Province, said on Tuesday (March 19) that the photovoltaic industry is currently facing a complex internal and external competitive environment To cope with the changes in the market, the company has decided to “optimize” its employment structure, which everywhere, in Europe as well as in China, means layoffs, though not 30%.

Earlier Bloomberg, citing people familiar with the matter, had said on Monday that due to overcapacity and fierce competition, Longi Green Energy plans to lay off nearly one-third of its 80,000 employees to reduce costs, a figure so large that it would have hinted at a

On Tuesday, the share price of Longi Green Energy, listed on the Shanghai Stock Exchange, fell 2.40 percent. The company’s share price is down 70 percent from its all-time high at the end of 2021. Longi Green Energy’s market value in 2021 will reach $85 billion (about $114 billion).

According to reports, China’s photovoltaic industry dominates the world but has seen layoffs and suspended investment plans in recent months.

Solar panel prices fell to record lows last year, forcing manufacturers to sell them at or below production costs. The solar industry is grappling with overcapacity, industry consolidation, and possible bankruptcy. Prices are now continually falling, as can easily be seen from this chart from PvxChange

Chinese PV companies have been trying to curb domestic expansion in recent months while increasing investment in overseas production. In December last year, a Chinese solar industry executive said the industry was shifting from a “Made in China, serving the world” model to an increase in near-shore or friendly-shore models to cater to the global market. That is, even China is considering relocating.