Layoffs ahead as Analogic shifts some production to China
Analogic (NSDQ:ALOG) yesterday said it plans to lay off about 90 workers at a plant in its Peabody, Mass., base as it shifts production to Shanghai.The move is aimed at aligning “research and development investment with expected customer funding” in Analogic’s security & detection business and a voluntary retirement program, the company said.
“As we grow our business and continue to focus on improving our profitability, we are restructuring our global manufacturing and realigning our R&D investment with market opportunities. The restructuring includes a voluntary retirement program to minimize the impact on our employees. With our Shanghai facility fully operational, leveraging this low-cost manufacturing capability will give us a key competitive advantage. In addition, we are aligning our R&D investment with expected customer funding levels in our security & detection business,” president & CEO Jim Green said in prepared remarks.Analogic said it expects the cuts to be complete by the end of fiscal 2016, a year from now, incurring charges of roughly $6 million during the fiscal year. Annual pre-tax savings are forecast to be about $4 million in fiscal ’16 and $9 million a year later.