AUS
NZ
UK
CA
USA
IND
Shares in Meyer Burger (LSE:0QQ7) experienced a sharp decline on Wednesday following the company’s announcement of significant restructuring plans. The Swiss solar panel manufacturer revealed intentions to reduce its workforce by approximately 20% and make substantial changes to its management team, including the departure of its chief executive. By 1400 BST, Meyer Burger's shares had dropped by 11%.
The restructuring aims to steer the company back to profitability. Meyer Burger, based in Thun and one of Europe's prominent solar panel manufacturers, plans to cut its global workforce from around 1,050 to approximately 850 by the end of 2025.
Chief Executive Gunter Erfurt will step down, although he will remain with the company in an advisory role during the transition. Erfurt, who has been with Meyer Burger for nearly nine years and has served as CEO since 2020, will be succeeded by Franz Richter. Richter, currently the supervisory board chair at German manufacturer Dr Honle, has been appointed as the executive chair. Meyer Burger stated that Richter brings "extensive experience in restructuring industrial companies."
Additionally, Chief Financial Officer Markus Nikles will leave the company at the end of September. His departure will leave the board with just three members, who will focus on achieving profitability as swiftly as possible.
Despite the growing demand for solar power in recent years, increased manufacturing capacity has led to downward pressure on prices. China has played a significant role in this expansion.
In a statement on X, formerly Twitter, Erfurt expressed his belief that the company has demonstrated the feasibility and necessity of producing solar panels outside of China. He criticized European politicians for not sufficiently protecting the European solar industry against unfair competition, suggesting that the future of the industry has been compromised due to a lack of support.
