American Superconductor Corp. (AMSC) has announced plans to reduce its global workforce by approximately 30%. The company also says it will reduce its annualized expenses by approximately $30 million.
These reductions were made to better align costs with the company's revenue expectations, which have been affected by business and contractual issues with AMSC's largest customer, Sinovel Wind Group Co. Ltd. AMSC expects to report a significant net loss on revenues of approximately $10 million for the fiscal quarter ended June 30.
The company is eliminating 150 positions across the organization. AMSC expects to incur restructuring charges of $3 million to $4 million for severance and related expenses in the quarter ended Sept. 30.
‘These workforce reductions are necessary to maintain the health of the business in the wake of our business and contractual issues with Sinovel,’ says Daniel McGahn, president and CEO of AMSC.
In addition, the company has announced that by Aug. 16, it expects to submit to the NASDAQ Stock Market a plan to regain compliance with NASDAQ 's listing rules.