By Denny Jacob
Vishay Intertechnology will close three manufacturing facilities and lower its headcount as part of a broader restructuring aimed at accelerating growth.
The manufacturer of semiconductors and passive components said selling, general and administrative functions will be streamlined beginning immediately and through the fourth quarter. This will affect about 170 employees, or 6% of the SG&A workforce.
Changes in manufacturing operations and production transfers will result in severance payments to about 260 employees, it added.
Vishay also noted it will close three manufacturing facilities in Shanghai, Germany and Milwaukee, Wis., which are expected to close by the end of 2026. This will reduce its direct labor by about 365 employees, or 2% of its total manufacturing workforce.
Vishay expects to incur pre-tax charges between $38 million and $42 million, most of which will take place in the third quarter. The company expects to realize annualized cost savings of at least $23 million once its changes are fully implemented by the end of 2026.
The Malvern, Pa.-based company expects to realize immediate annualized cost savings of about $9 million. Beginning in the first quarter of 2025, it expects to realize about $12 million in annualized cost savings.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
September 24, 2024 07:37 ET (11:37 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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