Entech Solar Inc. (Entech Solar), formerly WorldWater & Solar Technologies Corporation, has undertaken cost reduction activities to position the company for improved performance in the quarters to come. In conjunction with Entech Solar's shift in strategic direction, management has focused on reducing costs and streamlining the company’s overall operations. To date, Entech Solar has rationalized headcount and relocated the corporate headquarters from Ewing, New Jersey, to Fort Worth, Texas.
Entech Solar has already eliminated 33 employees, representing a 40% staff reduction and similar decrease in annualized payroll expense. In addition, Entech Solar plans to close its California locations by mid-2009 and has also eliminated a number of consultants. Entech Solar is targeting a 25% overall reduction in non-payroll costs by curtailing all non-essential spending and evaluating outsourcing opportunities.
Entech Solar Chief Executive Officer Frank Smith said This is a transformational year for Entech Solar. As such, we are not only changing our strategic focus but also looking to improve the operating structure of the business. We will continue to search for opportunities to reduce spending, decrease our cash burn, and allocate resources efficiently as we lay a framework to reach profitability and increase shareholder value.