GT Advanced Technologies To Cut Staff, Operating Expenses By About 40%

By Tonya GarciaMarketWatch Pulse

GT Advanced Technologies announced headcount and operating expense cuts of about 40% in order to emerge from Chapter 11 bankruptcy by the first quarter of 2016. The cuts will impact global operations and locations. GT Advanced declared bankruptcy on October 6, 2014 soon after Apple decided not to use the company's sapphire material for iPhone 6 screens. In court documents leaked in November, GT Advanced accused Apple of being a bully that wouldn't negotiate an agreement that ultimately forced them to sell product at a loss and played a role in the Chapter 11 filing. In December, the dispute was settled. In July, the company secured $95 million debtor-in-possession term loan facility. Its revised business plan will focus on core products and technologies, including sapphire. And there are plans to capitalize on demand for solar products.

Copyright © 2015 MarketWatch, Inc.

Continue Reading Below