SMA Announces Additional 350 Job Cuts as Residential and Commercial Solar Markets Slow

SMA Solar Technology has confirmed another round of workforce reductions as part of its ongoing restructuring across its residential and commercial divisions. The company plans to eliminate approximately 350 full-time positions by the end of 2026 — 300 in Germany and 50 across Asia and South America. SMA emphasized that no U.S. roles are affected in this phase of the restructuring.

This announcement follows an earlier decision in late 2024, when SMA revealed that it would cut 1,100 jobs in response to weakening demand and rising price pressure across the global solar market.

SMA CEO Jürgen Reinert said the latest measures are necessary due to the persistent downturn in the home and commercial PV sectors.
“In view of the continuing weak market and immense price pressure in the home and commercial sectors, we must expand our ongoing restructuring and transformation program, particularly in the Home & Business Solutions division,” Reinert explained.

To stabilize operations and adapt to the changing market environment, SMA outlined several cost-reduction initiatives. These include a revised production strategy with reduced hardware vertical integration, coupled with an expansion of manufacturing capacity in Poland. According to SMA, the shift is intended to improve international competitiveness while optimizing production costs.

The company also plans to implement a more efficient service model, focusing on faster response times, lower operational costs and updated pricing structures.

Initial discussions with employee representatives have already begun, with formal negotiations scheduled to start next Monday and expected to conclude by November. SMA intends to begin implementing job reductions starting January 2026.

Despite challenges in the residential market, SMA reports strong momentum in its large-scale power plant business. CFO Kaveh Rouhi highlighted that utility-scale solutions are performing well, even as new residential installations decline sharply compared to 2024 — particularly in SMA’s core market of Germany.

As the European residential PV market adjusts to softened demand, SMA’s restructuring reflects broader industry pressures, including oversupply, margin compression and shifting policy environments. The company aims to emerge with a leaner, more globally competitive structure, while doubling down on utility-scale growth.