The Solar City, the solar panel company that Elon Musk’s Tesla Motors plans to buy, will take up to $5 million in charges to cover the planned layoffs. It is also cutting the salary of its two co-founders to $1. Solar City did not reveal how many positions it would cut, but expects to incur restructuring charges ranging from about $3 million to $5 million.

“We fully expect to grow again in 2017, but we must reduce costs in the short term to be in a position to do so,” Kady Cooper, a Solar City spokeswoman, said in a statement.

“We see benefits from a combined solar / storage offering and manufacturing efficiencies, but remain concerned about cash flow and capital needs,” S&P Global Market Intelligence analyst Efraim Levy said.

The company had 15,000 workers at the end of last year. Solar City (SCTY) shares were down slightly to $23.59. Solar City leads all other solar panel companies in the U.S., accounting for 34% of home installations, according to GTM.

By Premji