First Solar to cut 2,000 jobs, close German plant as part of restructuring

First Solar, the world's biggest solar company by market value, yesterday said that it will close a facility, idle four production lines and cut 2,000 jobs as part of its cost-cutting plan amid falling prices and ''deteriorating market conditions in Europe.''

Tempe, Arizona-based First Solar will close its plant at Frankfurt (Oder), Germany, in the fourth quarter and indefinitely idle four of the 24 production lines at its manufacturing centre in Kulim, Malaysia, at the beginning of May.

It will reduce its headcount by 2,000 employees or about 30 per cent of its workforce. 

The company said that the cuts are expected to reduce its costs by $30 million to $60 million this year and $100 million to $120 million in future years. First Solar also said it expects to record charges of $245 million to $370 million as a result of the restructuring.

"After a thorough analysis, it is clear the European market has deteriorated to the extent that our operations there are no longer economically sustainable, and maintaining those operations is not in the best long-term interest of our stakeholders," said Mike Ahearn, chairman and interim CEO of First Solar. 

"The solar market has fundamentally changed, and we are quickly adapting our market approach and operations to maintain and build upon our competitive advantage," said Ahearn."