Note Laying Off in Skellefteå
SKELLEFTEA, SWEDEN -- Note AB will lay off an undisclosed number of workers here and take a SEK 40M ($5.72 million) restructuring charge, the result of a decision by its largest telecom customer to cease orders from the site.
Note, one of Europe's largest electronics manufacturing services companies, will record the restructuring charges in its third quarter. The charges will be offset by a deal struck with the undisclosed customer, which will add SEK 40M in liquidity for Note.
The Skellefteå, plant, in northern Sweden, has been hit by multiple downsizings and now has 40 employees.
Note is a Top 50 EMS company, according to the 2009 CIRCUITS ASSEMBLY Directory of EMS Companies.
“We’ve reached a mutual understanding with the customer to stop manufacturing their product immediately. The customer’s decision to cease manufacturing has come earlier than expected, requiring further downsizing of NOTE’s operation at Skellefteå. The settlement we have reached will bring additional liquidity of some SEK 40 million, and in combination with positive cash flow from operations in the second and third quarters of the year, our indebtedness will reduce," Note said in a statement.
Ed.: 1 SEK = 0.143117 USD
