Flextronics International Ltd. today has laid off 254 New Hampshire workers as part of the company's ongoing restructuring efforts.
The Singapore-based EMS company's Portsmouth, N.H. plant is the latest casualty of the recession that has contract manufacturers trimming their workforce and moving production to low-cost locales.
Two months ago, Flextronics executives said the company would restructure its global operations and layoffs were part of the downsizing plan along with consolidation, said Bob Egan, plant manager of the Portsmouth facility that is housed inside the Pease International Tradeport business district.
Prior to the layoffs, Flextronics had 615 employees at the Portsmouth facility. The company relocated to the site in August from a Rochester, N.H. plant.
Under its restructuring plan, Flextronics will create manufacturing hubs in low-cost regions and have a select number of regional plants instead of operating many individual plants.
By June 2002, the bulk of Flextronics manufacturing activity will take place in Dallas and seven designated low-cost areas --Brazil, Hungary, Malaysia, Mexico, Poland along with Shanghai and southern China.
"Flextronics said they were downsizing and reducing the number of facilities in the Western Europe and the United States," said Jim Savage, an analyst at Thomas Weisel Partners in New York. "It's going to be an ongoing process."