Nov 27 (Reuters) - SolarEdge Technologies ( SEDG ) said

on Wednesday it would shut its energy-storage unit and cut its

workforce by about 12%.

Demand is weak for residential solar in Europe due to a

decline in electricity prices and competition from Chinese

rivals.

In the U.S., the Israel-based company is facing tough

competition with companies such as Enphase Energy ( ENPH ) and

Tesla for market share in energy-storage products.

The company said in a statement the affected division was

solely focused on manufacturing lithium-ion battery cells for

battery energy storage systems in the utility segment, and that

its closure will not affect SolarEdge's ( SEDG ) residential, commercial

and industrial solar-attached storage products.

SolarEdge ( SEDG ) said the job cuts will affect nearly 500

employees, mainly in manufacturing positions in South Korea. It

had laid off around 1,300 employees earlier this year.

It had 5,633 employees as of Dec. 31, 2023, out of which

725 were based in South Korea.

The company expects to complete the latest round of layoffs

in the first half of next year. It would record charges related

to them in the fourth quarter of 2024 and in the first quarter

of 2025.

It expects to record aggregate pre-tax discontinuation and

asset-related charges of between $81 million and $99 million.

The company said it would focus more on its core solar

activities and expects to offset the charges through the sale of

assets at its energy-storage unit, including the manufacturing

facilities in South Korea.