Endicott, NY (WBNG Binghamton) Endicott Interconnect Technologies confirmed layoffs Thursday as part of corporate restructuring.
Acting CEO Jim Matthews, Jr. said that the decision to let some workers go is part of a six to eight month restructuring plan.
The company is in the process of being sold after filing for bankruptcy.
"Business realities will require EIT to reduce its workforce," Matthews, Jr. said. "We are cautiously optimistic that EIT can weather the tough business climate and succeed. "
The company has been losing employees gradually for years.
Fred Hayes worked in the complex chips division and would have been at EIT 15 years this January.
He said he'd taken weekend shifts and extra hours to stay with the company.
He thought his job was safe.
"You get accustomed to working in the same job," Hayes said. "You feel you're doing a good job for the people, and then they let you go unappreciated."
EIT was last reported to have 575 employees, down from more than 1,100 in January 2012.
It has furloughed most of its employees since last Friday.
Employees tell Action News those furloughs are to continue until Monday.
Integrian Holdings, the new buyer for EIT, says business realities will require EIT to reduce it's workforce.
Integrian agreed to assume $15 million of EIT's secured debt, and pay nearly $4 million to creditors and cover EIT's bankruptcy expenses and claims.
Jim Matthews, Jr. is also the CEO of Integrian.
New York had offered $2.5 million in an incentive package from Empire State Development to the buyer of EIT if they retained all 575 jobs.
Now that some employees are being laid off, the final word on that deal is unknown.
ESD released a statement in support of EIT.
“ESD remains committed to working with EIT ownership to preserve as many jobs as possible and mitigate the economic impact of a workforce reduction on the community and local economy."
It did not comment if Integrian would still receive the full $2.5 million package.