Q-Cells, one of the world’s biggest makers of solar cells, said it plans to slash about a fifth of its workforce in a move to counter the effects of a price war.

In a statement the German company said that with “the necessary reduction in overheads in all areas, around 500 jobs will be cut permanently.”

“Short-time work will continue to be in operation at the Thalheim plant depending on the market development,” Q-Cells said in a statement.

The company, which currently employs about 2,600 staff, said it would review all investment projects.