Smartflex to Cut About 30 Jobs in Move to Philippines
TUSTIN — Smartflex Systems Inc. said it will eliminate about 15% of its jobs as part of a plan to move most of its manufacturing to a new plant in the Philippines.
The electronics parts maker is cutting about 165 jobs at its Singapore factory and about 30 production and administrative jobs at its Tustin headquarters. The company had 1,316 employees at the end of June.
The cutbacks are part of a plan to move most manufacturing to a new factory in Cebu, the Philippines, and a factory in Monterrey, Mexico. Smartflex said it wants to take advantage of lower-cost plants.
After the move, Singapore and Tustin will function as service and support centers and will produce prototype parts in low volume.
The company said the third-quarter charge will include severance, equipment write-offs and other related expenses.
A survey of seven analysts predicted Smartflex would post a third-quarter loss of 3 cents a share. The company had net income of $1.7 million, or 27 cents a share, for last year’s third quarter.
The company’s stock price gained 13 cents a share Friday to close at $10.63 a share in Nasdaq trading.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
