St. Petersburg, FL - January 28, 2009....In response to the on-going global economic slowdown and resulting changes in demand requirements from customers, Jabil plans to cut its manufacturing capacity in certain geographies and to shrink its worldwide workforce of 85,000 by approximately 3,000. Jabil said the restructuring will appropriately align its manufacturing sites with the Company's current customer demand outlook and increase operational efficiencies. Approximately ten global plant sites will be impacted, and approximately ten percent of the headcount reductions will take place in the United States.
Jabil said that as a result of the restructuring, the Company currently expects to realize $55 million in annualized cost savings. The Company currently expects to recognize approximately $65 million in pre-tax restructuring and impairment costs over the course of fiscal years 2009 and 2010. The majority of these costs are currently expected to be recorded in the Company's operating results for the fiscal quarter ending February 28, 2009. The cash cost of such charges is currently estimated to be $54 million incurred over the course of fiscal years 2009 and 2010.
Restructuring at certain foreign plants is subject to consultation with Jabil employees and their representatives. A significant portion of the restructuring costs will be related to employee benefit and severance arrangements.
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil helps bring electronics products to the market faster and more cost effectively by providing complete product supply chain management around the world. With approximately 85,000 employees and facilities in 22 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, "JBL". Further information is available on the Company's website: jabil.com.
Investor & Media Contact:
Beth Walters, Vice President, Communications
Jabil Circuit, Inc.
(727) 803-3511 or email@example.com
This news release may contain forward-looking statements, including those regarding our restructuring decisions, the amount of the reduction of our worldwide workforce, the restructuring's effect on our operational efficiencies, the impact of our restructuring on our global plant sites, the location of our headcount reductions, our expected annualized cost savings, the amount of our pre-tax restructuring and impairment costs, and the timing of our recognition of such costs, the amount of the cash cost of our pre-tax restructuring and impairment costs, and the timing of our incurrence of such cash cost. The statements in this news release are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to: the outcome of our consultations with our employees and their representatives; delays encountered in finalizing the scope of, and implementing, the restructurings; the failure to achieve targeted cost savings; the failure to meet operational targets and customer requirements due to the loss of employees and any work stoppages that might occur; the affect of different legal and regulatory requirements that govern the extent, and the speed, of our ability to reduce our manufacturing capacity and workforce; other factors that we may not have currently identified or quantified; and the risks, relevant factors and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended August 31, 2008 and our other securities filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.