AMSC makes 25% staff cuts

UNITED STATES: AMSC has announced it is cutting 100 staff (25%) from its workforce as a result of market conditions.

AMSC said the move would save $10 million and reduce its global staff count to 340. The company said it had been affected by reduced growth plans of its customers in the wind industry.

The decision comes just over a year after the company cut 30% of its staff. That decision was taken in the aftermath of the shipment refusal and subsequent, ongoing intellectual property row with AMSC's former biggest customer, Chinese turbine manufacturer Sinovel.

Speaking about the decision, AMSC CEO Daniel McGann said: "While the long-term prospects for renewable energy remain bright, conditions in the sector today are challenging.

"Financing and cash flow among wind farm developers and wind turbine manufacturers have been constrained, which has impacted growth plans for some of our Windtec Solutions partners. Given this environment, we made the difficult but prudent decision to reduce our workforce in order to weather the industry downturn and minimise our cash usage."