Solar firm SunPower to reduce workforce, shut business segments

Solar firm SunPower to reduce workforce by about 1,000 people in coming days and weeks. The company will also wind down its SunPower Residential Installation locations and close SunPower Direct sales. The steps are being taken to simplify the business structure, transitioning away from areas where company has been unable to sustain profitable operations.

Solar company Sunpower flags issues with financial reporting. It expects a $15 million to $25 million decrease in income from continuing operations before income taxes. The misstatements relate to capitalization of certain deferred costs and wrongly classified sales commissions as cost of revenue. The breach was due to a delay in filing quarterly results stemming from inventory issues.