Suntech (STP) Cuts 800 Jobs

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09:57:46 am on January 13, 2009

Suntech’s pre-global financial crisis plans included hiring 2000 more employees and expanding its capacity to 1.5 GW in 2009. Instead, plans for expansion have been put on hold, and the company has laid off 800 of its employees, 10% of its workforce. According to TradingMarkets.com, the cuts were made on the basis of competency, with the least competent employees being laid off.

TradingMarkets.com also offered some further analysis on Suntech:

The company’s plants are running smoothly currently. These plants operated around 85% of their production capacity before the financial crisis and now the load is 50%-plus.

Suntech would post zero grass profit margin for October-December 2008, because prices of solar cells and modules slumped, it had to digest raw materials purchased at higher price and some consumers lengthened payment schedules, said Mr. Shi. He was not optimistic about the company’s prospect in early 2009 due to excess supply of solar cells, but he expected the situation to improve in March-November.

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