Vishay Intertechnology (Vishay), a US manufacturer of discrete semiconductors and passive components, has announced a restructuring plan that includes the closure of three manufacturing plants and the layoff of about 800 employees, according to a 25 September news release.
According to Vishay's official statement, the plants being closed include a diode packaging plant in Shanghai, China, and two resistor plants in Fichtelberg, Germany, and Milwaukee, Wisconsin, USA.
The closure of these plants is expected to be completed by the end of 2026, with production shifts beginning in the fourth quarter of 2025.
The restructuring will result in Vishay reducing its direct workforce by approximately 365 employees and streamlining its sales, general and administrative functions, with approximately 170 employees affected, and the manufacturing operations and production transfer will also result in a reduction in workforce of 260 employees in the manufacturing and production departments.
Vishay expects the restructuring to result in a pre-tax cash charge of $38 million to $42 million, primarily due to severance costs, the majority of which will be incurred in the third quarter of 2024.
Vishay expects annual cost savings of at least $23 million when the plan is fully implemented, with immediate savings of approximately $9 million and an additional $12 million beginning in the first quarter of 2025.
