PORTLAND, OR -- Electro Scientific Industries will close two facilities and downsize a third, and reorganize its management teams as part of a company-wide restructuring to shore up profits.

As part of the reorganization, the company will close facilities in Montreal and Napa, CA, and downsizing its Sunnyvale, CA, facility. The management teams will be changed from business unit to functional ones, and sales, service and operations leadership positions relocated to Asia.

The company expects to take pretax charges of $6.5 million to $8.5 million, approximately $5 million in its fiscal fourth quarter. When complete, the firm expects to save $10 million to $12 million a year from the moves.

The actions are expected to be largely completed by the end of June.

The laser drill OEM wants simplify its structure, improve execution, and increase consistency of earnings.

“We are streamlining our organization and reengineering business processes to transform the way our company gets things done,” stated Michael Burger, CEO of ESI. “Our top corporate priorities are to drive adoption of our new products, improve execution and deliver more consistent earnings over time. The new organizational structure should allow us to lower our breakeven revenue level while being more efficient and effective in addressing the long-term needs of our customers within our targeted markets.”

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