Meyer Burger to slash workforce, shares fall
18th Sep 2024 12:37
(Sharecast News) - Shares in Meyer Burger fell sharply on Wednesday after the solar panel manufacturer announced plans to axe around a fifth of its workforce and shake up management, including replacing its chief executive.
As at 1400 BST, shares in the Swiss firm had tumbled 11%.
The Thun-based business, one of Europe's largest manufacturers of solar panel makers, said the restructuring programme was intended to return the firm to profitability.
A "significant" streamlining of the group structure will cut the global workforce of around 1,050 to about 850 by the end of 2025.
Chief executive Gunter Erfurt is also stepping down and will leave the company, although he will continue to advise the board during a transition period. Erfurt has been with Meyer for nearly nine years and was appointed chief executive in 2020.
He is being replaced by Franz Richter, the supervisory board chair at German manufacturer Dr Honle. Meyer said Richter, who has taken over as executive chair, brought "extensive experience in restructuring industrial companies".
Chief financial officer Markus Nikles is also leaving the company. His departure, at the end of September, will leave a slimmed down board of just three members focused on "achieving profitability as quickly as possible", Meyer said.
Although demand for solar power has grown significantly in recent years, manufacturing capacity has also expanded, weighing on prices. China has led much of the growth.
In a post confirming his departure on X, formerly Twitter, Erfurt said: "I believe that we have been able to convince many people in Europe and the USA in recent years that production outside of China is not only technically and economically possible, but also absolutely necessary.
"Unfortunately, European politicians were too afraid of China and were not prepared to protect the European solar industry against unfair competition.
"For a second time, an industry of the future has been sacrificed to China."