TEMPE, AZ – Benchmark Electronics will shutter assembly sites in San Jose and Guaymas, Mexico, by the end of March and lay off about 3% of its global workforce.
Benchmark didn’t specify how many positions would be cut, but based on the firm’s fulltime headcount as of Dec. 31, the total would be about 315. The company also employs about 1,500 contract workers.
The two sites make up 4% of Benchmark’s global footprint of about 4 million sq. ft.
The sites combined serve fewer than 20 customers and build products for a variety of end-markets. Customers are expected to be moved into other locations by the end of the first quarter 2020.
“We will consolidate many of these programs at the sites in other manufacturing locations in our network, which will in turn improve their asset utilization and efficiency,” president and chief executive Jeff Benck said.
The EMS firm will take restructuring charges of $6 million to $8 million, of which $1 million to $2 million will occur in the current quarter.
Benchmark expects annualized savings of approximately $5 million once the site closures are completed.
The 79,000 sq. ft. San Jose site was formerly SMTEK, which was acquired by CTS Manufacturing Solutions in January 2005. It was acquired by Benchmark in October 2013.
The plant in Guaymas performs cable and wire harness assembly and electromechanical assembly.