Channel Technologies to lay off 198 employees in Santa Barbara
Channel Technologies, a Santa Barbara-area ceramic components maker that built products used in the Navy’s sonar equipment, will lay off 198 employees after the company filed for Chapter 11 bankruptcy protection Oct. 14.
Filings with the California Employment Development Department said affected workers will be let go on Dec. 20. The company also has operations in Littleton, Mass.
Channel Technologies makes about 5,000 components used in acoustic systems for fishermen, undersea exploration and defense. The company also builds navigation systems. The bankruptcy filing said its total employment was around 225 before the layoff notices were given to the EDD.
Chapter 11 allows companies to suspend debt payments in order to restructure and develop a plan to pay off debts. The company was expected to lose $11.6 million this year on around $30 million in revenue as it struggled to meet the terms of contracts it bid on earlier.
Northrop Grumman, Lockheed Martin and Raytheon are among its major customers.
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