Uniroyal Technology Reduces Workforce

Jan. 9, 2002
Uniroyal Technology Corp. has announced a program of consolidation to further its goal of transitioning to a high technology company focused on optoelectronics and electronic devices. The company has announced a work force reduction of 90 employees which, when combined with other consolidation efficiencies, provides an estimated $7.5 million in annual savings

Uniroyal Technology Corp. has announced a program of consolidation to further its goal of transitioning to a high technology company focused on optoelectronics and electronic devices. The company is marketing its Coated Fabrics segment to provide additional cash for the transition. In addition, the company has announced a work force reduction of 90 employees which, when combined with other consolidation efficiencies, provides an estimated $7.5 million in annual savings. UTC is a developer and manufacturer of advanced lighting solutions and compound semiconductor technologies through its Compound Semiconductor & Optoelectronics business segment.

"These prudent restructuring actions will enable the company to more effectively address the needs of our business. Combined with favorable long- term trends in our Compound Semiconductor & Optoelectronics segment, I believe UTC will be well positioned for a solid performance in 2002 and beyond," reported Howard R. Curd, Chairman and CEO of Uniroyal Technology.

"Our commitment to becoming a cutting edge technology company remains as we divest our legacy businesses to redeploy the proceeds into the areas of optoelectronics and silicon carbide technology. The decision to reduce our workforce was a tough one. But in order to facilitate our consolidation, it became necessary to reduce headcount in the Compound Semiconductor & Optoelectronics segment and to eliminate corporate functions that did not directly support that segment."

"This consolidation is part of our long term vision for UTC. Unfortunately, our position has not been helped by the sluggish economic conditions and the events of Sept 11th which had a costly effect on the yield from the sale of our Specialty Adhesives division. These combined conditions have also affected the timing of the sale of our attractive Coated Fabrics segment, which will also provide funding for the company's transition."

UTC also reported that as part of the consolidation it has implemented a company-wide salary freeze, together with a cut in the base salaries of its key executive officers, and the elimination of any bonuses for Fiscal 2001. This long-term plan is targeted to further help improve the company's cash flow and propel its move towards profitability. None of the cost cutting measures have impacted the Research & Development functions or meaningfully affected the production capabilities of the company.

Howard R. Curd added, "In the last two years, UTC has spent approximately $60 million for capital expenditures to retrofit facilities and increase production capabilities to position the company for meaningful growth. Our timely consolidation will position us to grasp the opportunities provided by a recovering economy and UTC will have a sharpened focus that will enable us to capitalize on the growth of our emerging technologies."

Sponsored Recommendations

Request a quote: Micro 3D Printed Part or microArch micro-precision 3D printers

April 11, 2024
See the results for yourself! We'll print a benchmark part so that you can assess our quality. Just send us your file and we'll get to work.

Request a free Micro 3D Printed sample part

April 11, 2024
The best way to understand the part quality we can achieve is by seeing it first-hand. Request a free 3D printed high-precision sample part.

How to Tune Servo Systems: The Basics

April 10, 2024
Learn how to tune a servo system using frequency-based tools to meet system specifications by watching our webinar!

Precision Motion Control for Sample Manipulation in Ultra-High Resolution Tomography

April 10, 2024
Learn the critical items that designers and engineers must consider when attempting to achieve reliable ultra-high resolution tomography results here!

Voice your opinion!

To join the conversation, and become an exclusive member of Laser Focus World, create an account today!