“GT Advanced Technologies Inc., which is trying to emerge from bankruptcy after losing its deal to supply scratch-resistant smartphone screens to Apple Inc., said Monday it was reducing its workforce by 40% in a bid to cut costs,” Patrick Fitzgerald reports for The Wall Street Journal.
“The company, which had already laid off some 700 workers at a former Arizona sapphire-manufacturing facility, said the further cuts will save it $20 million a year and help it ‘right size’ its costs after exiting chapter 11, according to papers filed in U.S. Bankruptcy Court in Manchester, N.H,” Fitzgerald reports. “The number of workers getting pink slips is unclear. A company spokesman couldn’t be reached for comment. GT Advanced had about 1,000 employees when it filed for bankruptcy in October.”
“A downsized GT Advanced still hopes to exit chapter 11 early next year. The New Hampshire-based company spent heavily to transform itself from a manufacturer of industrial equipment to a maker of sapphire screen material for Apple,” Fitzgerald reports. “However, the project struggled to produce a consistent level of sapphire at the quality demanded by Apple.”
Read more in the full article here.
MacDailyNews Take: Sheesh, what a mess! Hopefully, they can emerge from bankruptcy a much stronger, much more focused company and can begin hiring and rehiring employees ASAP.
SEE ALSO:
GT Advanced to pursue $95 million bankruptcy loan – March 18, 2015
GT Advanced wants bankruptcy judge to approve millions in executive bonuses – December 31, 2014
Apple, GT Advanced and the ‘boule graveyard’ – November 20, 2014
Lack of experience, mismanagement doomed GT Advanced’s sapphire adventure – November 19, 2014
Court unseals GT Advanced documents: Apple says it ‘bent over backwards’ to help sapphire supplier – November 7, 2014
GT Advanced COO sold $2 million in stock after sapphire deal with Apple began to sour – October 14, 2014
GT Advanced blames ‘oppressive and burdensome’ Apple terms in quest to ax sapphire production – October 10, 2014
GT Advanced CEO sold 9,000 shares the day before Apple’s iPhone 6/Plus event – October 7, 2014