Spruce Power of Denver, Colorado, a residential solar subscription service, is laying off 40 people as an apparent cost savings measure. The publicly traded company announced in a press release published on Wednesday that it is closing its Denver office, consolidating positions and making “workforce adjustments.”
According to a filing in the U.S. Securities and Exchange Commission, Spruce’s board of directors voted to approve the layoffs, closure and consolidation “to streamline operations,” claiming these actions will save the company $20 million annually.
Affected employees were informed on Wednesday that their roles would be terminated. Spruce is paying $1 million in charges related to the workforce reduction, stating that most of that will go toward employee severance pay.
“Our board and senior leadership team are taking proactive steps to preserve our strong cash position of more than $90 million, and to build a leaner, more efficient foundation for long-term growth … These actions reinforce Spruce’s commitment to deliver sustainable value to shareholders,” said Chris Hayes, CEO of Spruce, in a press release.
Spruce currently maintains distributed generation solar contracts and projects with 85,000 customers in the United States. Solar Power World has reached out to the company for additional comment.
