Advanced Energy Industries Inc. will reduce its global workforce by approximately 330 and reduce the salaries of management and executive officers, the company announced 12 March 2009.
As indicated d…
Advanced Energy Industries Inc. will reduce its global workforce by approximately 330 and reduce the salaries of management and executive officers, the company announced 12 March 2009. As indicated during its 4Q 2008 earnings call, the reductions are being made in response to the deteriorating economic conditions and weakening demand from the company“s end markets. The reduction represents 22% of the total workforce across all functional areas and locations. Salaries for management and executive officers will be cut by an additional 5%, totaling 15% overall, effective 1 April 2009, representing USD 8.2 million annually. “While we were hopeful that conditions would begin to stabilize, the markets we serve have nonetheless continued to deteriorate”, said Dr. Hans Betz, president and chief executive officer. “This has led us to take additional cost reduction measures in order to streamline our operations, and enable us to continue to focus on key market opportunities”. The measures, along with other discretionary spending reductions, will result in savings of approximately USD 21 million over the next three quarters, and will reduce the company“s breakeven point to USD 55 million by the end of the 2Q 2009, the company said. Total restructuring charges, including those from cost reductions announced in December 2008, will be approximately USD 3.8 million in the 1Q 2009 and approximately USD 800,000 in the 2Q of 2009. Advanced Energy provides power and control technologies for high-growth, thin-film manufacturing and solar power generation. It targets solar grid-tie inverters, solar cells, semiconductors, flat panel displays, data storage products, architectural glass and other advanced applications.