In a move designed to “create a more streamlined and flatter organization,” American Superconductor Corp., Westborough, Mass., recently restructured its business, laying off almost 100 employees, or 25% of its workforce. The cash cost to the company of the restructuring is approximately $2 million.
The costs associated with the restructuring will be taken entirely within the company’s fourth quarter ending March 31, 2002. According to an ASC press release, the company expects the impact on a loss per share basis to be about $0.44 to $0.54 for both the quarter and the year ending March 31.
The move includes combining the company’s Power Quality and Reliability business unit, based in Middleton, Wis., with its Power Electronics business unit, based in New Berlin, Wis. The new business unit, AMSC Power Electronic Systems, will be led by Chuck Stankiewicz, former general manager of the Power Quality and Reliability unit.
Greg Yurek, CEO of ASC explained the need for the changes. “The reduction in force was necessary to bring our cost structure more in line with our goals for achieving profitability,” he said. “We are also driving more of the day-to-day decision making into the business units where the P&L responsibility lies. As a result, we have made significant changes in the way we are organized.”
