Bankrupt sapphire glass supplier GT Advanced Technologies announced a staff reduction of 40% with the aim of optimizing costs. How many officers fired, not specified. It is known that at the time of filing of the bankruptcy petition in October 2014, the company counted 1,000 people, and later at a joint with the Apple plant in Arizona was cut more than 700 jobs.
At the end of 2014 Apple had reached an agreement with GT Advanced, in which the latter will pay the iPhone maker all debts by selling furnaces for production of sapphire glass, but Apple, in turn, will provide GT sapphire plant in use for a period of one year.
GT Advanced, which supplied Apple with sapphire glass, in October last year, filed for bankruptcy. This happened shortly after the “Apple” Corporation has announced iPhone 6 and iPhone 6 Plus. Contrary to rumors, Apple did not use sapphire glass in displays new smartphones.
The company, which has invested heavily in equipment for the production of sapphire glass, stated that the reason for the bankruptcy was the agreement with Apple.
GT Advanced Apple needs about $350 million of the nearly $600 million that was received in the form of a loan for the construction of enterprises for the production of sapphire. To cover this amount, the company implements the high-temperature furnaces, each of which is estimated at $500 000. Apple doesn’t get this equipment, and will take away revenue from the sale.
By downsizing the annual cost of GT Advanced will be reduced by approximately $20 million For restructuring, which should return the manufacturer to the development of different kinds of solar and industrial equipment, plans to spend up to $95 million.
When in September of last year, it became clear that Apple will not use sapphire in the iPhone 6, the shares of GT Advanced fell by 35%. Still there was hope that Cupertino will use sapphire by the company for their “smart” watch Apple Watch, however, as it turned out, and that it is not. Due to the failure of GT Advanced Russian company “the crystal” was able to get Apple more orders for the production of sapphire material to Apple Watch and iPhone, as well as become a leader in this market.