Rf Micro Devices Outsources 80 Jobs from Usa to China

RF Micro Devices has announced that it will move its cellular testing service from the USA to China - in a move which affects around 80 jobs. The company says the move represents the final phase of a production test transfer to RFMD's primary production test facility located in Beijing, China. RFMD currently employs over 2,000 employees in North Carolina, USA.

Bob Bruggeworth, president and CEO of RFMD, said, "This consolidation will reduce manufacturing cycle times, improve customer service and enhance overall profitability. RFMD's international revenue is over 90% of total revenue, and it is imperative that our supply chain aligns with our customers' manufacturing facilities, which are located primarily in Asia. While this is a difficult decision because of the negative impact on employees, these actions are necessary to better serve our customers, ensure competitiveness and help position RFMD for long-term sustainable profitability."

The production test facility consolidation is part of an ongoing process at RFMD to improve efficiencies, eliminate duplicative operations and better align resources for improved profitability. RFMD anticipates that it will record a cash restructuring charge of approximately $1.0 million, most of which should be recognized in the June 2008 quarter. The consolidation is expected to be completed in the September 2008 quarter and is expected to improve cash flow and profitability by approximately $3.0 million to $3.5 million on an annualized basis.

Posted to the site on 17th April 2008