Vishay Intertechnology (NYSE:VSH), a global leader in discrete semiconductors and passive components, today unveiled a series of restructuring initiatives aimed at optimizing its manufacturing operations and enhancing business decision-making processes.
These changes are part of the company's strategic plan, Vishay 3.0, designed to spur growth and improve efficiencies across its global footprint.
The restructuring, set to be rolled out in phases through the end of 2026, involves significant adjustments to the company's workforce and facilities.
Approximately 170 employees, or 6% of the SG&A workforce, will be affected by streamlining efforts starting immediately and continuing through the fourth quarter of 2025.
Further restructuring will see the closure of three manufacturing sites, including a back-end facility for the Diodes segment in Shanghai, China, by the end of 2026, with phased production transfers beginning in the fourth quarter of 2025.
Additionally, two smaller facilities in the Resistors segment located in Fichtelberg, Germany, and Milwaukee, Wisconsin, are slated for shutdown in 2026.
These closures will reduce the company's direct manufacturing labor force by approximately 365 employees, or about 2% of the total manufacturing workforce.
The reorganization will also trigger severance payments for roughly 260 employees due to various changes in manufacturing operations and production transfers.
Vishay anticipates incurring pre-tax cash charges estimated between $38 million to $42 million, primarily associated with these severance costs, most of which will be recorded in the third quarter of 2024.
Following the announcement, Vishay Intertechnology's share price remained steady at $18.48.