GT Advanced is laying off 40% of its workforce as it negotiates the terms of a $95 million bankruptcy restructuring plan, according to The Wall Street Journal. The cuts will enable the former Apple supplier to save $20 million per year as it looks to emerge from Chapter 11 bankruptcy in the United States.
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The report claims GT Advanced had about 1,000 employees when it filed for bankruptcy last October after its sapphire crystal deal with Apple fell through. The company already laid off some 700 workers at a Mesa, Arizona manufacturing facility that Apple plans to repurpose as a $2 billion global data center.
GT Advanced is reportedly committed to shifting its focus back to manufacturing industrial and solar equipment.
A group of GT Advanced bondholders put up $95 million to fund the company’s bankruptcy restructuring. The company is using the cash to fund a revised plan that calls for the ex-Apple supplier to return to its roots of making industrial and solar equipment.
While sapphire crystal rumors were widespread last year, Apple ultimately used ion-strengthened glass on the iPhone 6 and iPhone 6 Plus.
Top Rated Comments
(View all)I thought most of the employees were already gone.
It's mostly just the executives who are left to take the remainder of the money. It's the American Way. sigh.