Slumping GT Advanced laying off 25 pct of workers
NASHUA, N.H. (AP) — GT Advanced Technologies Inc. will lay off one-quarter of its workforce and prune other expenses to cope with a sharp drop in demand for its LED and solar cell products.
The cuts announced Wednesday will translate into the loss of about 165 jobs, based on the 663 workers that GT Advanced listed in its annual report.
The company, based in Nashua, N.H., expects to save about $13 million after the cuts are completed.
Along with the layoff announcement, GT Advanced also said its third-quarter results will fall on the low end of a forecast calling for revenue of $110 million and $140 million. Analysts surveyed by FactSet had predicted revenue of $122.5 million.
The revenue outlook disappointed investors, and GT Advanced shares fell 78 cents, or 15 percent, to close at $4.34.
The company is scheduled to release its full report for the third quarter on Tuesday.
CEO Tom Gutierrez blamed the layoffs and disappointing third-quarter performance on the "severe financial difficulties" facing Asian customers because of economic and trade challenges.
"We are not immune to these headwinds and we are taking actions to prepare for what is likely to be a challenging 2013 in our core markets by lowering our cost structure," Gutierrez said.