Commercial, Demand Management, Energy Efficiency, Industrial - September 26, 2016
EnerNOC announces restructuring, layoffs
of its subscription-based energy information systems business that will result in a 15% reduction in the company's global workforce.
The business update follows the announcement in June that EnerNOC was selling its industrial utility services business unit to CLEAResult, and serves as a reminder of challenges within the energy services market. The company, which sells its energy efficiency software to commercial and industrial businesses, said in a news release that the intent of the restructuring is to refine its focus on "select industry segments and high potential customers."
EnerNOC Chairman and CEO Tim Healy issued the following statement:
Over the past several years, we have made important product-related acquisitions, developed industry-leading EIS technology, and shaped the emerging EIS market. As a result, we are experiencing traction within a few key industries and with dozens of progressive enterprises that are ahead of their peers on the energy management maturity curve. We remain confident that forces such as increasingly common mandates to report energy consumption, investor interest in sustainability, and pressure to reduce energy risk throughout the supply chain will drive a substantial long-term EIS market opportunity. That said, we are restructuring our subscription software business to focus on those customers who are ready to buy in the near-term, reducing some redundancies associated with our previous acquisition activity, and continuing to work to ensure that we have the best EIS solution in the industry. We will continue to invest in customer success, but by adjusting our investment to meet the current market demand, we'll ensure that we're in the strongest possible financial position as the market matures.
The company is expected to provide additional details on the restructuring in conjunction with its upcoming third-quarter earnings release in early November.
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