Microsemi Reports US and Irish Plant Closures/Layoffs
Microsemi Corp. (Irvine, CA), a manufacturer of discrete semiconductors and power management integrated circuits, reported that it was closing two plants and cutting more jobs, as part of the third phase of its consolidation activities. Microsemi is consolidating the manufacturing operations of its Broomfield, CO, plant into other Microsemi plants; and closing its Ennis, Ireland, manufacturing operations.
As part of the first phase of its consolidations, the company has closed or consolidated eight other plants, and cut about 1,200 jobs, reducing its number of employees to 1,389. The Colorado plant represents approximately 12% of Microsemi's annual revenues and has approximately 165 employees. The Ireland manufacturing plant represents less that 5% of Microsemi's annual revenues and has approximately 70 manufacturing employees.
Costs associated with the completion of this third phase of consolidation are an estimated $9 million to $12 million over the next 12 to 18 months. The company anticipates that the closures will realize an annual cost savings of $6 million to $10 million. Both facilities will eventually be sold. As a result of the changes the company has made to date, the company has increased its end-of-fiscal-2006 operating margin target model to 27% from 25%.