Hayward's OptiSolar is laying off all but a few employees while it continues to look for a buyer for its solar panel manufacturing business.
The move will shut down the company's manufacturing plant near Sacramento, which if completed would be the largest solar cell production facility in North America.
The company had raised $200 million in venture capital, but couldn't come up with enough new credit to continue financing operations.
The saddest thing is the break-up of the team, which has done so much to advance large-scale solar," company spokesman Alan Bernheimer told the Sacramento Business Journal.
Laid off employees will receive two months pay and benefits.
Jackson West wonders why newly appointed Obama adviser Van Jones couldn't wrangle some stimulus money to save these "green collar" jobs.