An Apple supplier that had banked on the use of its sapphire crystal in the recently launched iPhone 6 has laid out plans to cut 727 jobs from its plant in Mesa, Arizona.
GT Advanced Technologies was slated to play a big role in Apple's new iPhones, supplying the much-hyped sapphire glass for the smartphone's screens. But the company has stumbled since it became clear that Apple's demand for the company's glass would be far less than anticipated, limited to the Apple Watch.
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Linda Luman, vice president of human resources for GT, filed a notification with the Mesa City Council detailing the layoffs, which will including 524 production workers. The letter states that employees have been told their "separation dates" and that the cuts will be permanent.
GT Advanced Layoffs Notification
GT filed for bankruptcy protection earlier in October, but claimed in a press release that it would be "business as usual" for the company thanks to its $85 million in cash.
GT's stock has plunged since Apple's new iPhone launch.
[img src="http://media.ycharts.com/charts/12c75efbcada564cafa3bbd010e2ab94.png" caption="" credit="" alt="GTATQ Chart"]GTATQ data by YCharts
GT Advanced declined to comment.
GT's fall highlights how Apple suppliers can be in a precarious position. As Reuters noted, GT struck a deal with Apple to invest a lot of money in the Mesa, Arizona, factory. Apple, however, had made no promises of buying the company's glass. Being in position to be the main supplier of screens for Apple's iPhones drove the company's stock to an all-time high of $20.54. It now trades at $0.44 per share.