AstroPower Cuts Jobs to Reduce Costs

AstroPower has reduced its workforce by over 10 percent through a layoff of approximately 55 employees. This brings AstroPower’s current number of employees to approximately 500.

Newark, Delaware – August 8, 2003 [] “The cuts were made across the board,” said AstroPower Public Relations Specialist Colleen Gourley. “But no hourly employees and no one on the manufacturing line were let go.” AstroPower engaged Bridge Associates, a turnaround management firm, to take charge of the day-to-day operations of the company and to stabilize its financial position. Bridge Associates’ Carl H. Young III is now serving as AstroPower’s interim Chief Executive Officer and Eric I. Glassman, CPA, is serving as the company’s interim Chief Financial Officer. Bridge Associates is evaluating the totality of AstroPower’s overhead expenses and is focused on reducing those expenses throughout the company’s operations. “This reduction in workforce is a direct result of AstroPower’s current financial position; and it comes after thorough analysis of current operating expenses and revenues,” said Young. “The cuts were not made arbitrarily; and they were certainly not made without regret. The situation is extremely unfortunate. But it was also unfortunately necessary.” Last month, AstroPower’s common stock plummeted and was later delisted from the Nasdaq National Market. These current challenges, according to Young, necessitated the company make a significant reduction in costs. “Without going into great detail,” said Young, “the expenses of the organization match revenues the company has yet to achieve. This reduction in workforce was a necessary action, albeit painful, to align expenses with current revenue. We will continue to evaluate all the company’s expenses and will make cuts where and when they will have the most impact on AstroPower’s profitability.” The workforce reduction is not expected to interfere in any way with AstroPower’s manufacturing capabilities. “These cuts were made with the single goal of reducing costs,” said Young. “As we all know, however, layoffs impact more than just a company’s bottom line. We certainly regret the impact they have on individuals and their families in the community.” Headquartered in Newark, Delaware, AstroPower manufactures solar electric power products, and provides solar electric power systems for the mainstream residential market. AstroPower develops, manufactures, markets and sells a range of solar electric power generation products, including solar cells, modules and panels, as well as its pre-packaged systems for the global marketplace. “We don’t predict additional layoffs in the foreseeable future,” said Young. “However, we will continue to assess all other cost control measures to help us meet our objective of bringing AstroPower through this crisis.”


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