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Advanced Energy Industries, Inc. has revised its revenue guidance for the fourth quarter of 2008 from$66 to $72 million, but also plans to cut its global workforce by 7%, or 114 staff. The cuts are an attempt to improve its cost structure and will see job losses across all functional and geographical areas. Adding this figure to previous staff cuts for the year, Advanced Energy has made 185 employees redundant this year to date.

Further cost-cutting measures announced by the company include a 10% pay cut for all executives as well as a 10% reduction in Board of Directors fees, which, taking into account the new 7% staff reduction announcement, is expected to yield annual cost savings of $25 million. The workforce reduction itself will cost approximately $1.9 million in 4Q08, $1.3 million for 1Q09 and $300,000 for 2Q09 in restructuring charges.

The company has also reviewed its end-of-life product and inventory strategies and excess and obsolete inventory reserve policies, resulting in a cost of approximately $3.5 million to cost of goods sold in the fourth quarter of 2008.