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GT Advanced to lay off 727 jobs, delisted from Nasdaq


Following the filing of bankruptcy, GT Advanced Technologies announced on Thursday that it would lay off 727 jobs at Mesa, Arizona plant that would be completed by December 15. The sapphire glass supplier for Apple has been de-listed from the NASDAQ stock exchange.GT

The company has issued notices to 524 production line workers, 108 technical jobs, 70 managers and 25 administrative positions, according to Linda Luman, GT’s VP of human resources and will lose their jobs by next Tuesday. The Arizona plant was bought and leased by Apple as a part of an agreement with GT Advanced for sapphire glass production. Apple had also agreed to finance $578 million for acquiring furnaces for mass producing the glass for iPhone 6 and iPhone 6 Plus.

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Apple scrapped the deal with GT Advanced  and the payment of $139 million for delay in the supply of the glass and went on to use ion reinforced glass in the new devices. GT Advanced had filed a Chapter 11 Bankruptcy and mentioned that Apple terms were “oppressive and burdensome” along with a permission to shut down the factory.

NASDAQ policy needed the company to be delisted due to the bankruptcy filing and the company had not filed an appeal. The final value of the shares fell to $0.43 during the delisting. More than 7000 workers are likely to be out of work though Apple stated that it is working with state and local authorities to find them jobs.

The court deciding the bankruptcy filing is still undecided on revealing documents of Apple terms with GT Advanced which the latter argues that it contains trade secrets. The documents also revealed that the operations at the plant were not disclosed due to Apple’s strict non-disclosure agreements.

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