SMA in Niestetal faces loss of millions: 350 jobs at risk!

SMA in Niestetal faces loss of millions: 350 jobs at risk!

The situation at the solar technology manufacturer SMA from Niestetal near Kassel is currently causing great uncertainty among employees. Current information suggests up to 350 jobs are at risk as the company faces reporting millions of pounds in losses. Official confirmation of the rumors about possible job cuts is pending, as both management and the works council have not yet been able to comment on them. A planned video call to inform the workforce was canceled at short notice, which further fueled the mood. CEO Jürgen Reinert also had to cancel an interview to work on revising a restructuring and transformation program that could be crucial for the company's future. daily news reports on a precarious situation that is exacerbated by a lull in the solar market and declining construction rates in Germany.

Amid all these challenges, SMA has already launched a comprehensive savings program that aims to save up to 200 million euros within two years. A large part of these savings will be achieved through staff cuts: 1,100 jobs worldwide are already affected, including around 700 at the Niestetal site. The job cuts will be implemented through non-renewal of contracts and terminations during the probationary period. A voluntary program to reduce the number of employees was agreed at the end of 2024. HNA explained that around half of the savings will come from these staff cuts, while other costs, such as materials and external services, will also be cut.

Review of economic development

The current crisis is not the first setback that SMA has had to accept. After a strong 2023 financial year, in which a profit of 225.7 million euros was achieved, the company closed 2024 with a significant loss of 117.7 million euros. This dramatic turnaround is also reflected in sales, which fell from 1.9 billion euros to 1.53 billion euros. The mood among employees is correspondingly pessimistic; Works council chairman Martin Breul emphasizes that the business model urgently needs to be made more resilient in order to address these uncertainties.

The challenge for SMA is also influenced by global factors. Cheap competition from Asia and US tariff policy under President Donald Trump, which is affecting the company's activities in the United States, are not making the situation any easier. Final assembly of large solar projects is planned to be relocated to the USA from 2026, but Trump's announcement that he will stop subsidies for green energy projects raises questions. Nevertheless, the share of sales in the USA is showing growth, and SMA is already cooperating with a US partner company to produce transformers.

The coming months will be crucial to see whether SMA can actually achieve its forecasts for 2025, which expect sales between 1.5 and 1.65 billion euros and a positive EBITDA of 70 to 110 million euros. However, Jürgen Reinert's observations that political uncertainties and filled middlemen's warehouses could have a strong influence on developments leave room for concern. It remains to be seen whether and how the company's strategy will adapt under the current strain.