GT Advanced Technologies to Reduce Work Force by 25%
GT Advanced Technologies (NAS: GTAT) plans to reduce its worldwide work force by around 25%, a move expected to cut $13 million in annual expenses. One-quarter of GTAT's work force is about 165 people.
The company also announced Wednesday that its third-quarter revenue would come in at the low end of its guidance of $110 million-$140 million. The company posted revenue of $167 million in the second quarter.
Company president and CEO Tom Gutierrez was quoted by the firm as saying that the reorganization measures were part of the company's preparation for what is anticipated to be a "challenging" 2013. Gutierrez noted the financial difficulties currently faced by some of GT Advanced's Asian customers.
The company will combine all of its divisions into a Crystal Growth Systems group. The company expects to record restructuring charges of approximately $4.2 million in the December-ended quarter.
The company is to report third-quarter results after market close on Nov. 6.
The article GT Advanced Technologies to Reduce Work Force by 25% originally appeared on Fool.com.Eric Volkman has no positions in GT Advanced Technologies. The Motley Fool has no positions in GT Advanced Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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