American Superconductor Slashes Workforce by More than 20%
On Tuesday, American Superconductor (NASDAQ: AMSC) announced it will cut more than 80 employees of its 400-plus workforce, which equates to more than 20%. This is part of the company's broader actions to reduce costs in order to return to profitability. The company also reaffirmed its 2011 guidance.
The shares of American Superconductor were halted right before 8:30 this morning.
American Superconductor expects that the initiatives the company has undertaken since March 31, 2011 will reduce its annualized expenditures by more than $50 million. The company anticipates that it will incur restructuring charges of less than $3.0 million for severance-related costs in the fiscal quarter ending December 31, 2011.
“The decision to reduce our workforce was difficult, but it is the most prudent course of action given today's macro environment,” said AMSC President and Chief Executive Officer Daniel P. McGahn. “We believe our new cost structure will enable us to reduce our cash usage and position AMSC for sustainable profitability even if the challenges facing the renewable energy industry and the broader global economy persist. In the meantime, we are successfully executing our business strategy, and we remain on track to meet the fiscal year 2011 revenue and non-GAAP net income forecasts that we detailed on November 9.”
American Superconductor's stock will resume trading at 9:00 a.m. Shares were halted at $4.01and are trading down over 85% year-to-date.
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