There’s no better time to drop some bad news than during an Apple keynote. So while the rest of the world was distracted with new iPads and a Retina iMac, Apple’s sapphire glass supplier informed workers at its Mesa, Arizona plant that most of them are getting laid off.
The sapphire plant was expected to bring over 2,000 new jobs to the area in its effort to supply iPhones and Apple Watches with unbreakable displays, but after 12 months of disaster, GT Advanced Technologies informed Mesa City Council today of its plan to eliminate 727 jobs from the plant.
GT Advanced Technologies announced its plans to close the Mesa plant earlier this month after filing for chapter 11 bankruptcy, in order to get out of the “oppressive” conditions of Apple’s contract. The company sank into financial trouble after failing to meet performance requirements to receive its final $139 million payment from Apple, while its CEO and COO both made millions dumping shares ahead of the iPhone 6 keynote.
The positions being laid off includes 524 production workers, 108 technical jobs, 70 management positions, and 25 administrative roles, says GT’s VP of human resources, Linda Luman.
The mass layoff is expected to start on Tuesday, as employees were informed of their departure dates Thursday afternoon. All 727 employees will be “separated from employment” by December 15th.
The Apple plant was viewed as a huge economic win for the city of Mesa, and Arizona in general, as Governor Jan Brewer bent nearly every rule in the book to land the plant. It was estimated that the plant would bring billions of dollars into the area. Apple could still retain ownership of the plant and bring in a new company to operate the sapphire furnaces, but it could take a long legal battle with GTAT before a new tenant moves in.
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
11 responses to “Apple’s sapphire supplier fired 727 employees during iPad keynote”
You had to call it “APPLE’s Sapphire Supplier” in the headline, without mentioning that they likely get sapphire from multiple suppliers for their various products. Why spin this as if it’s Apple’s fault? GT management messed this one up with their poor decision making, not Apple.
Idk about that it sounds as if apple is not at fault but I believe theres not enough info to determine who’s at fault.
Maybe because Apple insisted on complete control over making the sapphire. GT signed a crazy contract with Apple. Their fault. But since Apple insisted on complete control of everything inside and outside of that factory, they bear some responsibility for the outcome.
lol, so you have seen this contract
Glad the CEO Thomas Gutierrez made out like a champ selling off his shares before the keynote for iPhone 6.. Guy over promised and never delivered.. made out like a criminal.. oh wait, he is..
With the sell off of shares before the declaration of bankruptcy it sounds like a totally corrupt company.
So can someone explain to me why the SEC isn’t all over that CEO?
I’ll say it again. I hope this guy enjoys his money. From behind bars.
Hahaha! Wow. So much for bringing manufacturing back Stateside. Embarrassing is understatement this side of the Asian Century. For shizz…
They should make them pay back the cash they made from selling off their stocks. Knowing your company is going bankrupt and selling off your stock before the public is aware is about the same as insider trading. Any CEO that performs this poorly should not be rewarded and should be held accountable.
And this is why we can’t bring manufacturing back to the US. You can bet the Chinese would have bent over backwards to meet the requirements and get the plant pumping out product on schedule, certainly never calling it “oppressive” and throwing in the towel. I’m not saying it’s a good thing, since I’m sure the workers would be the ones doing the bending, but the Chinese have set a certain standard that’s difficult to achieve in the US.