Vishay Intertechnology Implements Restructuring Actions
Vishay Intertechnology (NYSE: VSH) has announced restructuring actions to optimize its manufacturing footprint and streamline business decision-making as part of its Vishay 3.0 growth strategy. The plan includes:
- Streamlining SG&A functions, resulting in severance for about 170 employees (6% of SG&A workforce)
- Closing three manufacturing facilities, reducing direct labor by approximately 365 employees (2% of total manufacturing labor)
- Implementing various changes in manufacturing operations, leading to severance for about 260 employees
The company expects pre-tax cash charges of $38-42 million, primarily for severance costs. Once fully implemented by the end of 2026, Vishay anticipates annual cost savings of at least $23 million, with $12 million in SG&A expenses. Immediate annual cost savings of about $9 million are expected, with approximately $12 million in annual savings beginning Q1 2025.
Vishay Intertechnology (NYSE: VSH) ha annunciato azioni di ristrutturazione per ottimizzare la propria presenza produttiva e semplificare il processo decisionale aziendale come parte della sua strategia di crescita Vishay 3.0. Il piano include:
- Semplificazione delle funzioni SG&A, che comporta il licenziamento di circa 170 dipendenti (6% della forza lavoro SG&A)
- Chiusura di tre stabilimenti produttivi, riducendo il lavoro diretto di circa 365 dipendenti (2% del totale della manodopera produttiva)
- Implementazione di varie modifiche nelle operazioni di produzione, con conseguente licenziamento di circa 260 dipendenti
L'azienda prevede oneri in contante prima delle tasse tra $38 e $42 milioni, principalmente per costi di licenziamento. Una volta attuato completamente entro la fine del 2026, Vishay prevede un risparmio annuale sui costi di almeno $23 milioni, con $12 milioni in spese SG&A. Si prevede un risparmio annuale immediato di circa $9 milioni, con circa $12 milioni di risparmi annuali a partire dal primo trimestre del 2025.
Vishay Intertechnology (NYSE: VSH) ha anunciado acciones de reestructuración para optimizar su presencia en fabricación y agilizar la toma de decisiones comerciales como parte de su estrategia de crecimiento Vishay 3.0. El plan incluye:
- Agilización de funciones de SG&A, resultando en despidos para aproximadamente 170 empleados (6% de la fuerza laboral de SG&A)
- Cierre de tres instalaciones de fabricación, reduciendo la mano de obra directa en aproximadamente 365 empleados (2% del total de mano de obra en fabricación)
- Implementación de diversos cambios en las operaciones de fabricación, lo que llevará a despidos de alrededor de 260 empleados
La compañía espera cargos en efectivo antes de impuestos de entre $38 y $42 millones, principalmente por costos de despido. Una vez completamente implementado para finales de 2026, Vishay anticipa ahorros anuales en costos de al menos $23 millones, con $12 millones en gastos de SG&A. Se esperan ahorros anuales inmediatos de alrededor de $9 millones, con aproximadamente $12 millones en ahorros anuales comenzando en el primer trimestre de 2025.
비샤이 인터테크놀로지(Vishay Intertechnology, NYSE: VSH)는 제조업체의 최적화 및 비즈니스 의사결정 간소화를 위한 구조조정 조치를 발표했습니다. 이는 비샤이 3.0 성장 전략의 일환입니다. 계획에는 다음이 포함됩니다:
- SG&A 기능의 간소화, 약 170명의 직원 (SG&A 인력의 6%)의 해고를 초래함
- 세 개의 제조 시설 폐쇄, 총 365명의 직원 (제조 노동의 2%)의 직접 노동 감소
- 제조 운영의 다양한 변경 사항 구현으로 약 260명의 직원 해고
회사는 해고 비용을 주로 포함하여 세전 현금 비용이 $38-42 백만으로 예상된다고 밝혔습니다. 2026년 말까지 완전 실행되면 비샤이는 연간 최소 $23 백만의 비용 절감을 기대하며, 이 중 $12 백만은 SG&A 비용입니다. 즉각적인 연간 비용 절감은 약 $9 백만으로 예상되며, 2025년 1분기부터 연간 약 $12 백만의 절감이 시작됩니다.
Vishay Intertechnology (NYSE: VSH) a annoncé des actions de restructuration pour optimiser son empreinte manufacturière et rationaliser la prise de décision commerciale dans le cadre de sa stratégie de croissance Vishay 3.0. Le plan comprend :
- Rationalisation des fonctions SG&A, entraînant des licenciements pour environ 170 employés (6 % de la main-d'œuvre SG&A)
- Fermeture de trois installations de production, réduisant le travail direct d'environ 365 employés (2 % de la main-d'œuvre totale en fabrication)
- Mise en œuvre de diverses modifications dans les opérations de fabrication, entraînant environ 260 licenciements
L'entreprise s'attend à des charges en espèces avant impôts de 38 à 42 millions de dollars, principalement pour des coûts de licenciement. Une fois entièrement mises en œuvre d'ici fin 2026, Vishay anticipe des économies annuelles d'au moins 23 millions de dollars, dont 12 millions de dollars en dépenses SG&A. Des économies annuelles immédiates d'environ 9 millions de dollars sont attendues, avec environ 12 millions de dollars d'économies annuelles commençant au premier trimestre 2025.
Vishay Intertechnology (NYSE: VSH) hat Umstrukturierungsmaßnahmen angekündigt, um den Produktionsstandort zu optimieren und die Entscheidungsfindung im Unternehmen zu vereinfachen, als Teil seiner Wachstumsstrategie Vishay 3.0. Der Plan umfasst:
- Optimierung der SG&A-Funktionen, was zu Entlassungen von etwa 170 Mitarbeitern führt (6% der SG&A-Belegschaft)
- Schließung von drei Produktionsstätten, was die direkte Arbeitskraft um etwa 365 Mitarbeiter reduziert (2% der gesamten Produktionsarbeitskraft)
- Umsetzung verschiedener Veränderungen in den Produktionsabläufen, was zur Entlassung von etwa 260 Mitarbeitern führt
Das Unternehmen erwartet eine Belastung von 38 bis 42 Millionen Dollar vor Steuern, hauptsächlich für Abfindungskosten. Sobald alles bis Ende 2026 vollständig umgesetzt ist, erwartet Vishay jährliche Kosteneinsparungen von mindestens 23 Millionen Dollar, wobei 12 Millionen Dollar auf SG&A-Ausgaben entfallen. Sofortige jährliche Kosteneinsparungen von etwa 9 Millionen Dollar werden erwartet, mit jährlichen Einsparungen von etwa 12 Millionen Dollar ab dem ersten Quartal 2025.
- Expected annual cost savings of at least $23 million by the end of 2026
- Immediate annual cost savings of approximately $9 million
- Additional $12 million in annual cost savings beginning Q1 2025
- Optimization of global manufacturing footprint
- Streamlining of business decision-making processes
- Pre-tax cash charges of $38-42 million, primarily for severance costs
- Reduction of approximately 795 employees across various departments
- Closure of three manufacturing facilities
Insights
This restructuring announcement by Vishay Intertechnology is a significant move that will impact the company's financial outlook. The planned actions include:
- Streamlining SG&A functions, affecting 6% of SG&A workforce
- Closing three manufacturing facilities, reducing direct labor by 2%
- Additional manufacturing changes affecting 260 employees
The company expects to incur
While restructuring can be disruptive in the short term, it often leads to improved efficiency and profitability. Vishay's focus on optimizing its manufacturing footprint and streamlining decision-making aligns with its Vishay 3.0 growth strategy, aiming to accelerate revenue growth, expand profitability and drive higher returns.
Investors should monitor the execution of these plans and their impact on Vishay's financial performance in the coming quarters. The immediate
Vishay's restructuring plan represents a significant shift in its manufacturing strategy, focusing on consolidation and efficiency. The closure of three facilities - including a back-end facility in Shanghai and two smaller plants in Germany and Wisconsin - signals a move towards a more centralized "campus manufacturing" model.
This approach typically allows for:
- Better resource allocation
- Improved economies of scale
- Enhanced knowledge sharing across product lines
- Reduced overhead costs
The transition from single product line facilities to multi-product campuses is a trend in the semiconductor industry, aimed at increasing flexibility and responsiveness to market demands. However, the execution of these transfers will be critical, as production disruptions could impact customer relationships and market share.
The reduction of 2% of the manufacturing workforce is relatively modest, suggesting that automation and process improvements may play a role in maintaining production capacity. Investors should watch for any impact on product quality or delivery times during this transition period, as these factors could affect Vishay's competitive position in the discrete semiconductors and passive components market.
Restructuring Actions Taken as Company Executes Vishay 3.0 Growth Strategy
MALVERN, Pa., Sept. 24, 2024 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc. (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive components, today announced that it is implementing restructuring actions designed to optimize the Company’s manufacturing footprint and streamline business decision making as it executes its Vishay 3.0 growth strategy.
The restructuring actions will be implemented in phases and include:
- Selling, general, and administrative functions will be streamlined beginning immediately and through 4Q 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.
The Company expects to incur pre-tax cash charges of approximately
“As we implement Vishay 3.0, reshaping the Company and preparing for our next phase of growth, we continuously task ourselves with identifying opportunities to best foster a business minded approach to decision making, further enhance our customer first focus and improve cost efficiencies,” said Joel Smejkal, Vishay's President and Chief Executive Officer. “With that in mind, we are undertaking these restructuring actions in part to eliminate barriers to execution and to intensify the sense of urgency. We’re also taking our first step to optimize our global manufacturing footprint, closing smaller single product line facilities and moving toward campus manufacturing structures with multiple product lines. Collectively, these actions will help us execute our five-year growth strategy to accelerate our revenue growth rate, expand profitability and drive higher returns.”
The Company's estimates of the costs related to its cost reduction programs and anticipated annual savings represent its current best estimates. However, such estimates are preliminary and subject to change as the Company implements these programs.
About Vishay
Vishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech®. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at www.Vishay.com.
Forward-Looking Statements
Statements contained herein that relate to the Company's future performance and operations, including costs related to its cost reduction programs, timing of the programs and anticipated annual savings, and manufacturing structures are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should," or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; manufacturing or supply chain interruptions or changes in customer demand due to political, economic, and health instability and military conflicts and hostilities; delays or difficulties in implementing our cost reduction strategies; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; changes in applicable accounting standards and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The DNA of tech® is a registered trademark of Vishay Intertechnology.
Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Executive Vice President, Corporate Development
+1-610-644-1300
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