Hayes consolidates production
Hayes, which emerged from a Chapter 11 bankruptcy reorganization this March, will close a manufacturing plant in California and consolidate its U.S. production sites at its headquarters.
Hayes will close its manufacturing operations at its Thousand Oaks plant by next March, resulting in the layoff of 350 to 375 employees.
The company will take a one-time restructuring charge of $6.5 million in the fourth quarter. It also expects to save $5 million to $6 million annually as a result of the changes.
"The computer industry is undergoing a period of intensifying global competition, where speed to market and low cost of production are more important than ever," said Dennis Hayes, founder and chairman.
Hayes has had two profitable quarters this year, and as previously reported by CNET, will offer 56-kbps technology in its modems and server products next year, as well as migrate existing desktop and rack mount modems to 33.6 kbps by the end of the month.