(Reuters) -SunPower said on Wednesday it plans to reduce its workforce and shut down certain business segments as part of a restructuring to help lower costs, sending the solar company's shares down 16% premarket.

The company said it will reduce its workforce by about 1,000 people in the coming days and weeks, and will also wind down its SunPower Residential Installation locations and close SunPower Direct sales.

The company expects charges of about $28 million related to severance benefits, early contract terminations and certain write-offs.

The steps are being taken to simplify the business structure, transitioning away from areas where the company has been unable to sustain profitable operations, and improving financial controls, SunPower's Principal Executive Officer Tom Werner said in a letter to employees.