Electro Scientific Industries, Oregon’s oldest technology company, unveiled a broad restructuring Friday to streamline the business and produce more dependable financial results.
ESI will close facilities in Montreal, Canada and Napa, California, and downsize a site in Sunnyvale. Additionally, the Washington County company said it would make “other select reductions.”
“We are streamlining our organization and reengineering business processes to transform the way our company gets things done,” new chief executive Michael Burger said in a written statement. “Our top corporate priorities are to drive adoption of our new products, improve execution and deliver more consistent earnings over time.”
ESI did not say how many people will lose their jobs in the restructuring. In April, the company reported it has 698 employees, including 47 temporary workers.
In recent years the company has employed about 250 at its headquarters just north of Highway 26. The company declined to say how many work there now, or how many will lose their jobs in the restructuring.
Also Friday, ESI said it has fired vice president of operations Robert DeBakker. It said the company offered him a severance deal that includes a consulting agreement that runs into June.
ESI, founded in 1944, sells laser tools and other equipment to electronics manufacturers. The company has struggled in recent years to find a dependable market for its technology.
Friday’s cutbacks will save between $10 million and $12 million annually, according to ESI. The company said it expects to spend $6.5 million to $.8 million on the restructuring.
ESI reported $33.8 million in sales in the quarter ended December 31, down from $43.3 million the prior year. It lost $9.7 million last quarter, more than double its loss the prior year.
In August, ESI hired Burger to be CEO shortly after he sold his last company, Cascade Microtech.
ESI’s stock opened up 4.8 percent Friday. Its shares have traded between $4.50 and $7.56 in the past year.
— Mike Rogoway; twitter: @rogoway; 503-294-7699
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