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What: Shares of GT Advanced (Nasdaq: GTAT ) got crushed by as much as 21%, after the company announced a reorganization that entailed massive layoffs.
So what: The company is laying off a quarter of its entire workforce, which is expected to reduce annual expenses by $13 million. GT Advanced is consolidating its businesses and looking to reduce costs in the face of a challenging economic environment. The December quarter will see restructuring charges of about $4.2 million as a result.
Now what: Revenue for the third quarter is expected to come in on the low end of management's guidance of $110 million to $140 million, with complete earnings results to be released on Nov. 6. CEO Tom Gutierrez said that Asian customers are "experiencing severe financial difficulties," and believes that the company's core markets will be challenging next year. However, the company remains optimistic about its long-term prospects in the solar and LED markets.
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