China's Longi says it will lay off about 5% of employees

Credit: REUTERS/DADO RUVIC

Adds company comment in paragraph 2, background in paragraphs 4-6

BEIJING, March 19 (Reuters) - China's Longi Green Technology Energy 601012.SS, the world's largest solar manufacturer, said in a statement on Tuesday that it will lay off about 5% of its employees.

"Currently, the solar photovoltaic industry is facing an increasingly complex and competitive environment. In order to adapt to market changes and improve organizational efficiency, the company is optimising our workforce," Longi said in a statement to Reuters.

It added that online information about the company's plans to lay off 30% of its employees is false.

Bloomberg news reported on Monday that Longi plans to cut nearly one-third of its staff as a cost-saving measure, citing people familiar with the matter.

The report said Longi's staff last year totalled about 80,000. Longi's website says the company had 60,601 employees as of April 2023.

Solar manufacturers have been forced to sell at or below production costs amid global overcapacity and as solar cell prices have plunged. Officials at a China Photovoltaic Industry Association (CPIA) meeting last month said the fall in prices have led companies to cancel or pause planned investments and lay off workers.

(Reporting by Colleen Howe and Ellen Zhang in Beijing; Writing by Emily Chow; Editing by Muralikumar Anantharaman and Christian Schmollinger)

((emily.chow@thomsonreuters.com; Reuters Messaging: emily.chow.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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