Vishay Intertechnology, Inc., a manufacturer of discrete semiconductors and passive components, announced that it is implementing restructuring actions designed to optimize its manufacturing footprint and streamline business decision making as it executes the Vishay 3.0 growth strategy.
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The restructuring actions will be implemented in phases and include:
- Selling, general and administrative functions will be streamlined beginning immediately and through Q4 2025, resulting in severance payments to approximately 170 employees, or 6% of the SG&A workforce.
- The closure of three manufacturing facilities. A Diodes segment back-end facility in Shanghai, China is expected to be closed by the end of 2026 with production transfers completed in phases beginning 4Q 2025. In addition, two small facilities in the Resistors segment in Fichtelberg, Germany, and in Milwaukee, Wisconsin, are expected to be closed in 2026. As a result of these facility closures, Vishay will reduce its direct labor by approximately 365 employees, or 2% of its total manufacturing labor workforce.
- Various changes in manufacturing operations and production transfers, which will result in severance payments to approximately 260 employees.
Vishay expects to incur pre-tax cash charges of approximately $38 million to $42 million, primarily related to severance costs, as a result of these programs, mostly in Q3 2024. Once the program is fully implemented by the end of 2026, Vishay expects to realize annualized cost savings of at least $23 million of which approximately $12 million is expected to be in selling, general and administration expenses.
The company also expects to realize immediate annualized cost savings of approximately $9 million. Beginning Q1 2025, Vishay expects to realize approximately $12 million in annualized cost savings.
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