Solar panel maker—Meyer Burger announces major restructuring, job cuts and sacks top execs

Swiss solar panel maker, Meyer Burger, has announced a sweeping restructuring plan, cutting 200 jobs and replacing its CEO and CFO, as it battles fierce competition from Chinese-made solar panels, raising questions about its future in the global renewable energy industry.

Meyer Burger Technology AG, the struggling Swiss solar panel manufacturer, has announced a sweeping restructuring plan in an effort to regain profitability.

The company’s leadership is undergoing a significant overhaul, with CEO Gunter Erfurt and CFO Markus Nikles stepping down. Chairman Franz Richter will take over as CEO, and the management board will be reduced to three members.

The company also plans to cut approximately 200 jobs from its 1,050-employee workforce, highlighting the severity of the challenges it faces.

Solar Industry Struggles in Europe and the U.S.

Meyer Burger is a globally active mechanical engineering company with headquarters in Switzerland. (Meyer Burger)

Meyer Burger’s difficulties reflect the larger struggles within the solar panel industry in Europe and the U.S., where cheaper Chinese-made products dominate the global market. Despite government support aimed at bolstering local manufacturers, companies like Meyer Burger have failed to compete effectively.

In fact, Meyer Burger’s recent attempt to establish a solar cell factory in the U.S. collapsed, signaling the company’s dwindling options.

This restructuring effort may be a last-ditch attempt to stabilize the business, but as Zürcher Kantonalbank analyst Bernd Laux noted, it may be “too late” to reverse the company’s slow decline.

Broader Economic Context

The company’s woes are emblematic of the broader economic challenges facing Europe, as outlined in a report last week by former European Central Bank President Mario Draghi. The European Union has been slow to counter the U.S. Inflation Reduction Act‘s green subsidies and China’s aggressive industrial policies, which have negatively impacted critical industries like solar manufacturing.

Meyer Burger aims to generate 350-400 million Swiss francs ($414 million) in annual revenue by 2026, relying on existing production capacity and long-term contracts. However, the road ahead remains fraught, as the company explores selling its technology and equipment to solar cell manufacturers as a potential new revenue stream.

The End or a New Beginning?

While the restructuring may give Meyer Burger some breathing room, the company’s future remains uncertain. Without significant shifts in global trade policies or major technological innovations, European solar manufacturers may continue to struggle in the face of relentless competition from China.