According to a Trading Markets report, Suntech Power Holdings Co., Ltd. has cancelled plans to recruit an additional 2,000 staff, choosing instead to cut 800 jobs, or 10% of the company’s current workforce – a seasonal adjustment, according to the report. Dr. Zhengrong Shi, Chairman and CEO, was quoted in the report as blaming the current financial crisis for the change in plans.
The news follows recent announcements claiming to be the first company to reach 1GW of solar cell and module production capacity. The report cited Mr. Shi’s comments regarding the company’s profit margin for 4Q08, which said that any depletion in profits would be a result of the slump in prices of solar cells and modules. He was also cited as saying that the credit crisis has led to the company’s having to purchase raw materials at higher prices, while some customers extended their payment schedules. It seems Mr. Shi was “not optimistic” about early 2009 due to an excess of solar cells, but that he was looking forward to an improvement in March-November 2009.