AMSC Cuts Workforce
Devens-based AMSC announced it has reduced its workforce by 25 percent to reduce operating costs and increase liquidity in response to what the company called "challenging conditions in the wind power market."
Reductions were made across the company's eight locations worldwide, according to a statement by the electric grid and wind power company. After the layoffs, AMSC now employs about 340 employees, according to a statement by the company.
"While the long-term prospects for renewable energy remain bright, conditions in the sector today are challenging," said AMSC President and CEO Daniel P. McGahn.
Cash flow among wind farm developers and wind turbine manufacturers has been constrained recently, according to McGahn, which impacted the company's growth plans.
"Given this environment, we made the difficult but prudent decision to reduce our workforce in order to weather the industry downturn and minimize our cash usage," McGahn said.
Annualized expenditures will be reduced by about $10 million as a result of the cost reduction action, according to AMSC. Annualized operating expenses will now total less than $58 million.
After reporting revenue gains and narrowing losses in the second quarter, the former American Superconductor Corp. expects a net loss of $24 million in the third quarter ending Dec. 31, according to the company.
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