OSLO, Sept 10: Norwegian group Otovo, the biggest residential solar power provider in Europe by its own account, said Tuesday it would cut 46 percent of its workforce to counter industry-wide "headwinds".
Otovo's board approved an annual savings plan of 200 million to 225 million kroner ($18.5 million to 21 million), to be achieved mostly by reducing the number of staff from 366 today to around 200.
"These are necessary reductions in cost levels to bring the company to profitability in the current market environment," chief executive Andreas Thorsheim said in a statement.
Founded in 2016, Otovo sells and installs solar panels for residential buildings in 13 European countries, including Britain, France, Germany, Italy and Spain.
"Several European solar markets have seen a dip in 2023-2024, after the expansion of demand in the wake of the energy crisis of 2021-2022," Otovo said in a statement.
In August, when the company presented its second quarter results, it said it was experiencing "market headwinds", primarily in Scandinavia and Spain, two of its main markets.
The group posted a 42-percent drop in operating profit from a year earlier, and a 46-percent fall in sales.
It said Tuesday some markets were seeing tougher financial conditions for homeowners and lower electricity prices. —AFP
