AMSC has announced it will make drastic cuts to its workforce in order to work to improve its financial stability: The company says it will lay off more than 20% of its 400 employees across all of its geographic locations and functions.
This round of layoffs follows a previous wave of workforce cuts this past spring by the company, which has been experiencing financial trouble.
These actions are expected to save AMSC more than $50 million a year, the company notes, adding that it will incur less than $3 million in restructuring charges and severance-related costs in the fiscal quarter ending Dec. 31.
"The decision to reduce our workforce was difficult, but it is the most prudent course of action given today's macro environment," says Daniel P. McGahn, AMSC's president and CEO. "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."