ROCHESTER (AP) -- A plant that manufactures electronic circuit boards, many for use by the IBM Corp. branch here, will close midway through the year, putting 550 people out of work, officials said.
Celestica Inc. officials announced Thursday that they are ratcheting down their manufacturing operations due, in part, to a slump in the technology industry. The closure of the 2-year-old plant will also idle 40 workers under contract from employment firms.
The cuts are part of a global restructuring plan announced last week by the Toronto-based company.
General manager Gary Moore and Steve Delaney, president of Celestica operations in the Americas, visited workers Thursday to tell them of the cuts. Of their reaction, Delaney said: "There was what you would expect, some shock and sadness."
The workers will receive severance pay and outplacement help, but Delaney declined to disclose details of their benefits package. He and Moore said they have informed city government officials and business development leaders.
Celestica's plant on Rochester's northwest side is carrying too much manufacturing capacity and related expense within its global system, Delaney said.
The company's makes and tests circuit boards mostly for use in servers made by IBM in Rochester. That production will be transferred to other Celestica plants. Some of the manufacturing work already has been sent overseas, Delaney said.
About 2 1/2 years ago, about 400 people lost their jobs when another high-tech company in Rochester, Western Digital, made major cuts. That company, which makes disk drives, planned to close entirely this month.
Brainerd Dispatch ©2013. All Rights Reserved.