Advanced Energy Cuts Jobs, Consolidates Facilities
Advanced Energy Industries Inc. (Fort Collin, CO) announced that it is consolidating its manufacturing operations after cutting another 107 jobs, or eight percent of its workforce. The company is also phasing out its manufacturing facility in Austin, TX, so it can begin outsourcing the assembly of certain dc power products. The company also warned that more lay offs are likely.
Advanced Energy has trimmed its workforce by 26 percent, from 1,600 employees at the beginning of the year to 1,185. The company said more job cuts are expected over the next six months as it phases out its Voorhees, NJ, facility.
"We have implemented several tiers of our cost-reduction program as the environment dictated over the past seven months," said Doug Schatz, Advanced Energy’s chairman and CEO. "The continuing slow down in orders and the uncertain timing of an industry rebound force us to take even more aggressive actions to further reduce our cost structure."
The actions will result in a restructuring charge of roughly $2.5 million, with revenues coming in between $28.0 million and $33.0 million in the fourth quarter. The company expects the actions will result in annual savings of about $11.0 million.