Capstone Flattens Organizational Structure to Lower Cost, Increase Adaptability as well as Foster Innovation and Creativity
April 10 2015 - 4:15PM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today that it has flattened
its organizational structure to lower operating costs, increase
adaptability as well as foster more innovation and creativity.
The new organizational structure will eliminate three executive
positions and will save the company an estimated $2 million
annually in salaries equity, benefits, bonuses, and travel costs
after payment of associated employee severance benefits.
As one part of the organizational change, Capstone's Executive
Vice President and Chief Financial Officer (CFO) Edward Reich will
be leaving the company to seek other opportunities. Jayme Brooks
has been newly promoted to Chief Financial Officer and Chief
Accounting Officer from her long-standing role as the company's
Vice President Finance and Chief Accounting Officer as the two
positions are being merged into one leadership role under the new
structure.
Flat organizational structures feature less layers of management
where employees are more empowered and are expected to take on a
range of responsibility for what would be traditionally considered
managerial decisions in their daily work routines. In flat
organizations lower-level employees are often included in the
corporate goal-setting processes and are motivated to help the
company reach those goals. This shared process cultivates
accountability, encourages better communication, promotes
organizational flexibility and improves overall response times to
meet project deadlines.
These types of organizations tend to be more adaptable, due to
their smaller hierarchies and reduced bureaucracies. When
front-line employees are empowered to make higher-level decisions
on projects, for example, they can often craft their own unique
operational solution without seeking the approval of upper
management, thus streamlining the workflow.
"Open communication and collaboration should improve under this
new organizational structure since more responsibility will now be
placed upon each individual; creating a situation where innovative
and collaborative self-starters will excel. In addition, we can
attract the type of employees who are encouraged by a work
structure that requires self-motivation and cross-functional
teamwork," said Darren Jamison, President and Chief Executive
Officer at Capstone Turbine.
"In light of the macroeconomic headwinds in oil, currency
exchange and geopolitical issues affecting our business over the
past year, I felt all the more compelled to flatten our
organization and center our focus on improving our current
products, broadening our aftermarket services and leaning our
internal operations to achieve our short-term goal of EBITDA
breakeven," added Jamison.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST) is the world's leading producer of low-emission
microturbine systems and was the first to market commercially
viable microturbine energy products. Capstone Turbine has shipped
approximately 8,000 Capstone Microturbine systems to customers
worldwide. These award-winning systems have logged millions of
documented runtime operating hours. Capstone Turbine is a member of
the U.S. Environmental Protection Agency's Combined Heat and Power
Partnership, which is committed to improving the efficiency of the
nation's energy infrastructure and reducing emissions of pollutants
and greenhouse gases. A UL-Certified ISO 9001:2008 and ISO
14001:2004 certified company, Capstone is headquartered in the Los
Angeles area with sales and/or service centers in the New York
Metro Area, United Kingdom, Mexico City, Shanghai and
Singapore.
The Capstone Turbine Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6212
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about the
advantages of our new organizational structure. Forward-looking
statements may be identified by words such as "expects,"
"objective," "intend," "targeted," "plan" and similar phrases.
These forward-looking statements are subject to numerous
assumptions, risks and uncertainties described in Capstone's
filings with the Securities and Exchange Commission that may cause
Capstone's actual results to be materially different from any
future results expressed or implied in such statements. Capstone
cautions readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. Capstone undertakes no obligation, and specifically
disclaims any obligation, to release any revisions to any
forward-looking statements to reflect events or circumstances after
the date of this release or to reflect the occurrence of
unanticipated events.
"Capstone" and "Capstone MicroTurbine" are registered trademarks
of Capstone Turbine Corporation. All other trademarks mentioned are
the property of their respective owners.
CONTACT: Capstone Turbine Corporation
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com
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