SAN MATEO -- Facing mounting losses, SolarCity on Wednesday announced a corporate restructuring, including layoffs and slashed executive pay.
The San Mateo solar panel installer is setting aside $3 million to $5 million for restructuring, primarily to pay for severance payments, the company told regulators. Most of the buyout packages will be paid this year. The company also cut the salaries of co-founders Lyndon and Peter Rive from $275,000 to $1.
SolarCity, the largest residential solar installer in the United States, employs about 13,000 workers. It serves 285,000 customers in about 20 states and the District of Columbia.
SolarCity spokeswoman Kady Cooper said the company would not release details about the cuts. While sales have improved, she said, the company still fell short of expectations for the first half of the year. SolarCity revenues grew 80 percent during the most recent quarter, but it still had net losses of $55 million in the second quarter. The company has yet to turn a profit.¹