AMSC Lays Off 20 Percent Of Workforce
Less than three weeks after reporting a quarterly loss of more than $50 million, Devens-based AMSC announced it is laying off more than 20 percent of its workforce worldwide.
AMSC, formerly American Superconductor, said today's action, as well as others over the last eight months, will reduce expenses by more than $50 million. The company anticipates that it will incur close to $3 million for severance-related costs this quarter.
It has been a turbulent year for AMSC, which makes wind and electricity grid products. In April, the company lost the business of Chinese wind power company Sinovel Wind Group Co. Ltd., which had accounted for 70 percent of its revenues. Last month, AMSC stopped plans to purchase The Switch Engineering Oy, a Finnish wind turbine company, because of problems with financing the deal. Through the first half of its current fiscal year, which ended Sept. 30, AMSC has reported a loss of $89 million, compared with a $17 million profit during the same six months in 2010. At the same time, revenues plunged to $29.9 million from $195 million
AMSC did not provide a breakdown of where the layoffs are occurring, but said the Devens headquarters will employ more than 100.
"The decision to reduce our workforce was difficult, but is the most prudent course of action given today's (economic) environment," said AMSC President and CEO Daniel P. McGahn. "In the meantime, we are successfully executing our business strategy, and we remain on track" to meet revenue and profit forecasts the company established for its current quarter.
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