Advanced Energy Cutting Jobs, Exec Salaries

FORT COLLINS, Colo. (AP) — Advanced Energy Industries Inc., which produces electricity converters for chip makers and other manufacturers, said Thursday it was cutting its work force by 22 percent and slashing the salaries of management and executive officers.

Citing deteriorating economic conditions, the company said it was reducing its global work force by roughly 330 people. It also said it would cut the salaries of management and executive officers by an additional 5 percent, totaling 15 percent overall, effective April 1.

"While we were hopeful that conditions would begin to stabilize, the markets we serve have nonetheless continued to deteriorate," said Hans Betz, president and chief executive officer. "This has led us to take additional cost reduction measures in order to streamline our operations, and enable us to continue to focus on key market opportunities."

The new cost reductions are expected to reduce salary costs by roughly $8.2 million annually. The company said that together with other discretionary spending reductions, it expects roughly $21 million of savings over the next three quarters.