Milpitas, CA—Solectron Corp. reports that it will lay off approximately 3,500 employees, mostly in non-U.S. locations, as part of its restructuring plan.
Milpitas, CA— Solectron Corp. reports that it will lay off approximately 3,500 employees, mostly in non-U.S. locations, as part of its restructuring plan. This will result in an estimated $100-115 million in charges, of which approximately 90% will be cash expenditures. The company had $11.64 billion in sales from continuing operations in fiscal 2004.
Solectron estimates its restructuring plan will be completed by the end of fiscal 2006’s third quarter (3Q06). Besides its layoffs, the firm will consolidate approximately 850,000 sq ft of facilities in Europe and North America.
‘These are difficult but necessary actions as we continue to refine our cost structure. By adjusting our capacities and strengthening our position in low-cost geographies, we will improve our financial performance,’ says Mike Cannon, Solectron’s president and CEO.
Solectron sold its Force Computers embedded computing business to Motorola Inc. in 3Q04 for an undisclosed sum. It previously sold its Kavlico sensor products business to Schneider Electric for about $195 million.
Solectron provides manufacturing and integrated supply chain services to the technical companies worldwide. Its offerings include new-product design and introduction services, materials management, product manufacturing, product warranty, and end-of-life support.
Control Engineering Daily News Desk
Jim Montague, news editor
[email protected]
