A sapphire producing company GT Advanced Technologies has announced it will be cutting 890 jobs and will close its business center in Salam, Massachusetts. Apple had contracted the company to provide the sapphire display to Apple Watch. The company reported that it may land in legal conflicts with Apple as well. The company started to face problems when they began to pursue bankruptcy protection.
Moreover reporting on the reason to cutoff the jobs, the company said that it is facing the loss of $1 million every day. They suggested that it is very important for them to stop all these losses so that they can focus on their main business which was mainly to sell things like sapphire furnaces etc. Moreover they also added that there are many grounds on which they can launch legal complaints against Apple regarding the business relationship they had with each other.
The company also told that to pursue those claims is not among their top priorities. They will only take steps to terminate most legal agreements they made with Apple earlier. Responding to their approach, Apple has already claimed that they have strong commitments to hold GT to agreement otherwise it will result in putting Arizona jobs on risk. Apple made agreements with them to expand business in the state.
Rivals like Rubicon Technology responded to the issue with positive attitude. On NASDAQ the company is rising with 23% and its currently trading a share at $4.93. Nevertheless analysts decipher this rise just a mere market reaction of GT pursuing for bankruptcy.
Nevertheless GT will not only cut the jobs in Arizona but also wrap up its business center in Salam, Massachusetts to overcome the loss. The company is all set to initiate the process for its revival and estimated that they will complete the task by the end of this year.