(MENAFN) GT Advanced Technologies Inc announced it is planning cut 890 jobs, as well as close an Arizona plant expected to make scratch-resistant screens for Apple Inc, due to increase in losses
The company said it is planning to re-focus its resources on the operation of its core business of selling sapphire furnaces and other products.
The company also said it believes it has many claims against Apple arising out of its business relationship with Apple, which resulted in GT Advanced transforming itself from a supplier of sapphire furnaces to a manufacturer of sapphire for Apple last year, with Apple providing USD578 million in funding for GT and the company agreeing to repay the money in a five-year period beginning in 2015.
However, signs of troubles began showing when Apple said that its iPhone 6 would use rival Gorilla Glass instead of sapphire material and GT Advanced is using this decision as grounds for the company's current financial troubles.
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