Nov 8 (Reuters) - Enphase Energy ( ENPH ) will cut its

global workforce by about 17%, impacting about 500 employees and

contractors, it said on Friday, as the solar inverter maker

streamlines operations amid slowing residential solar demand.

The company, which has been grappling with a deteriorating

market for residential solar in Europe, will focus contract

manufacturing in four existing locations - two in the US, one in

India and one in China. The company will cease its contract

manufacturing operations in Guadalajara, Mexico, it added.

Enphase's shares have fallen close to 50% so far this year,

with demand for its services weighed down by lower electricity

prices and greater competition in key markets such as the

Netherlands and Germany.

Enphase will incur about $17 million to $20 million in

restructuring and asset impairment charges, of which about $14

million would be in the fourth quarter of 2024. The total cash

expenditures would be about $11 million to $12 million.

The latest move comes after the company unveiled

previous job cuts in December last year, when Enphase said it

would reduce its global workforce by about 10%, impacting about

350 contractors and employees.

"The ongoing challenges from a tough 2023 solar market have

continued to impact us and our industry partners throughout

2024," CEO Badri Kothandaraman said in a message to employees,

which was disclosed in a regulatory filing.

"A combination of factors - including reduced U.S.

residential solar demand due to high interest rates and

declining demand in Europe due to policy changes and utility

rate adjustments - has contributed to sustained unpredictability

in our industry."

Enphase said its adjusted operating expenses in the fourth

quarter are expected to increase as a result of restructuring

plan.

The company expects to reduce its adjusted operating

expenses to a range of $75 million to $80 million a quarter in

2025.

It expects to substantially complete these restructuring

actions by end of the first quarter of 2025.