[News] China’s Big Five Solar Firms Reportedly Cut 87K Jobs in 2024 as 40+ Companies Exited Market

China’s top solar firms slashed nearly a third of their workforce in 2024, according to filings seen by Reuters, as the once-booming sector now reels from plunging prices and mounting losses.

According to Reuters, China’s top five solar giants slashed nearly 87,000 jobs last year as the industry buckled under mounting losses. Major players including LONGi Green Energy, Trina Solar, Jinko Solar, JA Solar, and Tongwei cut an average of 31% of their workforces, the report suggests.

In addition, more than 40 Chinese solar companies have collapsed, delisted, or been bought out since 2024, a Reuters analysis found, citing China’s photovoltaic industry association. The carnage followed aggressive expansion from 2020-2023, which triggered a price crash and brutal price war worsened by U.S. tariffs on Chinese-owned Southeast Asian factories, ultimately leading to $60 billion in industry losses for 2024, as per Reuters.

Global solar panel production now runs at twice the level of demand, with most panels manufactured in China, Reuters reports. The surplus stems from overcapacity amid sluggish market conditions.

Beijing’s Next Move

Notably, China’s industry ministry pledged in early July to curb chaotic price wars in the solar sector, aiming to stabilize the struggling industry, Reuters reported. At a recent meeting with industry players, minister Li Lecheng reportedly called for improved quality control and an “orderly exit” of outdated capacity.

While analysts remain uncertain whether job cuts have continued into 2025, Reuters notes that the government’s recent actions suggest it’s preparing to intervene. Polysilicon prices surged nearly 70% in July, while solar panel prices have also seen modest gains, the report adds.

According to Reuters, China’s top solar manufacturers are plotting an OPEC-style alliance to control pricing and supply, with major polysilicon producer GCL leading the charge. The group reportedly plans a 50-billion-yuan fund to buy out and shutter roughly one-third of lower-quality production capacity.

Meanwhile, LONGi Green Energy told Securities Times it plans to fast-track the rollout of high-efficiency products, like Back Contact Solar Cells, to break free from the sector’s cutthroat low-price trap.

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