Advanced Energy Cuts Jobs, Closes Texas Facility
Advanced Energy Industries Inc. (Fort Collin, CO) announced changes in operations designed to reduce redundancies and better align the company’s recently acquired mass flow controller business within its operating framework. The plan includes manufacturing and facilities consolidations, related headcount reductions of approximately 100 individuals or seven percent of the workforce, and stringent discretionary spending restrictions.
The major operational change is the elimination within the next 90 days of the Austin, TX, manufacturing facility for the Aera-brand mass flow controller products. The Hachioji, Japan, facility is able to support business levels significantly higher than current demand and will assume all manufacturing for the mass flow controller business. The Texas location will continue as a support, service and sales office.
Doug Schatz, chairman and CEO said, "While we will begin to realize cost savings immediately, the actions will ultimately reduce operating expenses by approximately $4.0 million per quarter, beginning in the first quarter of 2003, the first full quarter after the plan has been completed. These expense reductions, which are also prudent during these uncertain economic times, will enable us to meet our goal for operating profitability at the $70.0 million to $72.0 million quarterly revenue level when fully implemented."