: Jabil to restructure its business, lay off workers

Electronics maker Jabil Inc. said late Monday it will embark on a restructuring that includes “headcount reductions” and cost about $200 million to implement.

Jabil
JBL,
+1.56%

said in a filing with securities regulators that its board approved the plan last week, with the goal of realigning the company’s costs after its deal with China’s BYD Electronics.

The two companies said in August that BYD Electronic was planning to buy Jabil’s mobile-electronics manufacturing business for nearly $2.2 billion to expand its smartphone-components footprint.

Jabil did not specify how many positions would be cut or provide any other details about the plan.

The company said it expects to recognize about $300 million in pre-tax restructuring and other related costs in its fiscal year 2024. It expects the charges to result in net cash expenditures of around $200 million, payable over fiscal years 2024 and 2025.

“The exact timing of these charges and cash outflows, as well as the estimated cost ranges by category type, have not been finalized” and depend on consultation with employees and their representatives, severance requirements depending on the location, and other factors, the company said.

Shares of Jabil edged lower in the extended session Monday after ending the regular trading day up 1.6%. In the year to date, Jabil’s stock has gained 89%, compared with an advance of about 12% for the S&P 500
SPX
index.

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