January 4, 2012 / 1:37 PM / 6 years ago

UPDATE 1-Satcon to cut 140 jobs, close Canadian facility

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Jan 4 (Reuters) - Photovoltaic inverter maker Satcon Technology Corp said it would cut 140 jobs worldwide, about 35 percent of its workforce, and close its Canadian facility, to cut costs.

Satcon, which makes products used by businesses and utility companies to convert renewable energy sources into electrical power, has been hurt by subsidy cuts in Europe.

The company said it expects to save about $15 million to $17 million per year, after the implemention in the second quarter of 2012.

The cost cutting actions would result in a charge of about $2.8 million to $3 million, majority of which would be taken in the fourth quarter of fiscal 2011, the company said in a statement. The rest would be taken in the first quarter.

Satcon also plans to write down the value of certain non-cancellable supplier-held inventory, and expects to take a charge of about $20 million to $26 million.

Shares of the Boston-based company closed at $0.63 on Tuesday on Nasdaq. (Reporting by Megha Mandavia in Bangalore; Editing by Supriya Kurane)

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