On Wednesday, SolarEdge Technologies (NASDAQ:SEDG) said it will close its Energy Storage division, causing mostly 500 job losses in South Korea. The action is a part of the company’s attempts to simplify processes and concentrate on main lines of business.

With the entire cost-saving effect predicted by the second half of 2025, the closure is estimated to save quarterly running expenses by $7.5 million. Regarding the division’s closure and corresponding asset write-offs, SolarEdge also anticipates pre-tax expenses ranging from $81 million to $99 million.

Interim CEO Ronen Faier said the choice shows SolarEdge’s dedication to improve financial stability by means of cost cuts and solar, photovoltaic (PV)-attached storage and energy management capacity priority. Following an earlier layoff of 1,300 workers this year, this current workforce cut SolarEdge employed 5,633 people overall as of the end of 2023, including 725 in South Korea. Following the news, SolarEdge’s premarket trading saw more than a 3% bump, indicating investor approval of the cost-cutting initiatives.

This article first appeared on GuruFocus.