Recently, rumors about significant layoffs and production cuts in the Chinese photovoltaic industry have circulated, causing shock in the market. Giants such as Longi, JA Solar, and JinkoSolar have responded to these speculations. Are these rumors true or false?
“Many photovoltaic companies are currently laying off employees, and several are reducing production,” said a representative from Sunshine Surface Photovoltaic Technology Company to Jiemian News.
An employee from a listed company stated, “I have heard that many photovoltaic companies plan to downsize in the short term, but as of now, no company has taken concrete action. The recent actions include temporarily halting expansion and recruitment. I’ve heard from headhunters that Longi Green Energy is planning layoffs, but it has not been implemented yet. ATS has temporarily stopped recruitment. Other companies like JA Solar, JinkoSolar, and Dongfang Risheng are reducing production rates, especially for outdated capacities. While the need for workers and front-line managers will decrease, there is no plan for large-scale layoffs.”
Jiemian News interviewed nine listed photovoltaic companies, including Longi Green Energy, JA Solar, ATS, Dongfang Risheng, and Xinjin Solar.
According to Jiemian News’ statistics, the number of employees in the photovoltaic industry has sharply increased over the past three years. In 2020, 61 A-share listed photovoltaic companies had a total of 259,800 employees. In 2021, the number increased to 311,900, a 20% YoY increase. In 2022, the workforce surged to 406,700, a 30% YoY increase. What changes will occur in the number of photovoltaic industry employees in 2023?
A representative from Longi Green Energy, the “big brother” in the photovoltaic industry, stated, “Usually, at the end of each year, we conduct normal organizational optimizations based on annual performance evaluations and market changes. Regarding the rumored number of layoffs, we currently do not have a specific ratio or number. Future talent planning will depend on market changes, company capacity expansion, and other factors. Therefore, there is no relatively long-term plan for the future because the entire market is changing rapidly.”
“At the September 2023 performance briefing, we outlined the company’s future expansion plans, adopting the BC route. We are continually advancing capacity construction in new technologies. Original capacity will be adjusted based on market conditions, with production line upgrades subject to internal assessments,” said the representative from Longi Green Energy.
In 2020, 2021, and 2022, Longi Green Energy experienced a significant increase in personnel, reaching 46,600, 50,000, and 60,600, respectively.
Regarding layoff rumors, a representative from JA Solar, one of the top ten module manufacturers, stated, “Currently, the company has no plans for layoffs. Production and operations are normal. The market competition is intense, with module prices experiencing a certain decline compared to the past, putting pressure on profits in this segment. To address this, the company is implementing cost reduction measures while simultaneously leveraging new capacity to dilute unit costs.”
PERC products are a focus for JA Solar this year, and the company states that these products will not immediately exit the market. The representative added that the company has reserved space for upgrading to N-type capacity and will adjust according to market conditions.
In 2020 and 2021, JA Solar’s workforce saw limited growth, but in 2022, there was a significant increase, reaching 25,200, 29,600, and 32,600, respectively.
As a leading company in photovoltaic cell manufacturing, Aixu shares were rumored to cut production by 30%. In response, a representative from the company stated, “Our production capacity is still on the rise, with minimal impact. Although module prices have declined significantly, the overcapacity mainly occurs in outdated P-type capacities. We are pursuing the N-type ABC route, targeting the mid-to-high-end market, mainly overseas. Overseas market prices fluctuate, but overall, there is no significant impact on selling prices. Recently, the photovoltaic industry has introduced many policies, and both domestic and foreign markets are forecasting increased installation capacity, indicating a growing demand in the overall market.”
In 2020, 2021, and 2022, Aixu shares experienced growth in personnel but remained below ten thousand, with 5,778, 6,796, and 9,137 employees, respectively.
Dongfang Risheng, focusing on heterojunction solar cells, was rumored to reduce production by 15%, mainly affecting Topcon cells. A representative from the company clarified, “The Topcon capacity is newly established, and there is no reduction in 2023. We primarily focus on heterojunction cells. The heterojunction cell line started construction this year, and the lines are currently being activated. Specific capacity is in Zhejiang Ninghai County and Jiangsu Jintan. Ninghai has Phase I and Phase II, and we plan to have both lines operational next year. The company’s total cell capacity is 19GW, and module capacity is 21GW. Sales of heterojunction cells have always exceeded supply, and at the beginning of 2023, we signed orders for 2GW. There is no need to worry about sales.”
“Whether it’s Topcon or heterojunction, advanced capacity in the market is never oversupplied. Compared to the former, old PERC capacity may gradually be phased out. Regarding layoffs, there is currently no notice. The company is large, and personnel changes are normal. There were no layoffs in 2022. Regarding recruitment, the company has always been active,” said the representative from Dongfang Risheng.
Over the past three years, Dongfang Risheng has seen steady growth in personnel, with 8,554, 10,800, and 11,700 employees in 2020, 2021, and 2022, respectively.
Companies affiliated with the Xinte Group are rumored to have stopped recruitment and introduced a series of competitive elimination plans to optimize personnel. An industry insider close to the senior management of Xinte Group told Jiemian News, “The company belongs to the upstream of the industry chain, and we have not seen large-scale layoffs so far. The phenomenon of layoffs is more apparent in downstream equipment manufacturers, especially in smaller enterprises. However, many companies will not directly lay off employees but will choose not to start operations, suspend production for a long time, and employees can only receive relatively low basic wages.”
JinkoSolar Technology is actively recruiting. A representative from the company stated, “We mainly focus on three major business segments: photovoltaic power station development, station services, and energy services. In terms of photovoltaic grid connection, the grid connection volume is gradually increasing. In addition to photovoltaic power station business, our key development focus in 2023 and 2024 is distributed photovoltaic business, especially household photovoltaics. It has C-end attributes, requires channels, and the brand needs to directly face customers, so we need more personnel. We have been recruiting, and in recent years, the company’s workforce has been maintained at around 1,000 people. From 2022 to 2023, the workforce has increased by several hundred people.”
Tongwei Corporation is rumored to be reorganizing personnel previously recruited. As one of the photovoltaic giants, in 2020, 2021, and 2022, Tongwei Corporation saw significant increases in personnel, with 25,500, 32,200, and 41,200 employees, respectively.
In addition, Zhonglai Corporation and Mingguan New Materials both stated that official announcements should be referred to for accurate information.
The securities department of Zhonglai Corporation told Jiemian News, “Relevant information should be based on the officially released announcements, and other situations are currently unclear.”
Regarding rumors of low operation rates, recent adjustments in positions, and the cessation of new hires, a representative from the Secretariat of Mingguan New Materials told Jiemian News that the above rumors are inaccurate.