AMSC, a CSA Corporate Sustaining Member, announced that it has reduced its workforce by more than 20 percent in order to lower the company’s cash usage as it works toward a return to profitability. The reductions have been made across all of AMSC’s major geographic locations and functions. The company now has a global workforce of over 400 employees.
Including this action, AMSC expects that the initiatives the company has undertaken since March 31, 2011 will reduce its annualized expenditures by more than $50 million. AMSC anticipates that it will incur restructuring charges of less than $3.0 million for severance-related costs in the fiscal quarter ending December 31, 2011.
“The decision to reduce our workforce was difficult, but it is the most prudent course of action given today’s macro environment,” said AMSC President and Chief Executive Officer Daniel P. McGahn. “We believe our new cost structure will enable us to reduce our cash usage and position AMSC for sustainable profitability even if the challenges facing the renewable energy industry and the broader global economy persist. In the meantime, we are successfully executing our business strategy, and we remain on track to meet the fiscal year 2011 revenue and non-GAAP net income forecasts that we detailed on November 9.”
