According to Bridgelux’s CEO, Bill Watkins,the company is cutting 53 out of 250 jobs at its head offices in the East Bay, Livermore,equaling to about one-fifth of its workforce, a move brought about by its decision to shift to cheaper ways to produce LEDs.

These cutbacks come on the heels of the Solyndra shutdown that erased 1,100 jobs.

The company has decided to shift its focus of producing LEDs on sapphire surfaces to a less expensive system of putting them on silicon surfaces.

The company is eliminating its current production of LEDs on sapphire surfaces, which is what triggered the job cuts.

According to Watkins,"We are spending all of our dollars on silicon. Wefeel that is a real game-changer."A switch to silicon from sapphire could slash production costs by 75 percent, Watkins estimated."We are trying to gain technology leadership by doing this.”

Bridgelux hopes to move to mass production of LEDs on a silicon surface within 18 months. And the company is negotiating a joint venture with an Asia-based company to conduct the manufacturing of the new generation of LEDs overseas. Watkins wouldn't identify the company.