FREMONT, CA -- Plexus plans to close its manufacturing facility here and lay off about 200 workers, the company announced today.
Closure of the 46,000 sq. ft. facility is expected to save the firm about $7 million per year. Plexus expexts to take $3 million to $5 million in restructuring charges beginning in the current quarter.
"While this is a difficult decision, we believe that proactively aligning our footprint to meet the future needs of our customers is necessary to best serve the long-term interests of Plexus and our shareholders," said CFO Patrick Jermain. "It is our intention to move the customer programs to other Plexus sites and complete the transition by the end of our fiscal third quarter. Once fully implemented, these actions are expected to generate approximately $7 million dollars in annual savings."
Dean Foate, chairman, president and chief executive, said, "Deciding to close a facility is never an easy decision and we are sensitive to the impact this has on our employees, their families and the community. The dedication of our employees at the Fremont site has contributed to many successful customer partnerships; however, changing end-market dynamics necessitate that we optimize our capacity to meet customer demand. We have evaluated the value proposition and long-term viability of each of our manufacturing locations and have determined that the future growth prospects of our Fremont facility were limited."