Citing continuing weakness in the telecom market, connector supplier Molex Inc. announced it plans to cut 550 jobs and take a pretax charge of up to $40 million in its current fiscal quarter as it consolidates U.S. and European fiberoptic component production.
A spokesperson for the Lisle, Ill., company said 300 positions in the U.S., mostly in production, will be eliminated at. fiberoptic plants in Bolingbrook and Downers Grove, Ill. The remaining reductions would occur at plants in Ennis, Ireland, and Biberach, Germany that are slated to close.
The spokesperson added that fiberoptic component production in the affected facilities would shift to other Molex fiberoptic plants.
Molex said the restructuring charge would result in earnings of 1 cent per share in the fourth 2003 fiscal quarter ending June 30. Pro-forma fourth-quarter earnings were projected at 15 cents to 16 cents a share, compared with previous guidance of 14 cents a share, boosted by eliminating some bonus payments to employees.