FormFactor (NASDAQ:FORM) said on Friday it will consolidate its manufacturing footprint in California as part of a broader restructuring designed to improve gross margins and better align its production capabilities.
The company plans to combine operations at its facilities in Carlsbad and Baldwin Park. As a result, between 200 and 300 employees are expected to be affected, with staff either exiting the business or remaining on board during the transition period.
FormFactor said it anticipates total restructuring costs in the range of $30 million to $40 million. Of that amount, future cash outlays associated with the consolidation are expected to be approximately $10 million to $15 million.
Most of the consolidation measures are scheduled to be substantially completed by the end of December, the company added.