SMTC Plans to Lay Off 150 Employees
Oct 01, 2004
SMTC Plans to Lay Off 150 Workers As Part of an Ongoing Restructuring Plan
SMTC Corp said that it plans to lay off 150 employees in the third and fourth quarters as it moves most of its assembly operations to Mexico.
The layoffs, which will cost between $2 million and $3 million, are part of the Toronto company's ongoing restructuring plan to return to profitability after three years of losses. SMTC swung to a profit of $100,000 in the second quarter ended July 4 from losses in the two previous quarters and a year-ago loss of $39.9 million.
The layoffs will occur primarily at the company's Toronto plant, Todd said. SMTC is moving the majority of assembly operations from that plant to its Chihuahua, Mexico, facility. Todd said SMTC expects to be able to incorporate the assembly operations at the Chihuahua plant without hiring any new workers. The Toronto factory will continue to make low-volume, high-complexity printed circuit board assemblies.
The company said 2004 sales will likely be near the bottom end of its earlier forecast for sales of $250 million to $260 million.