Vishay Intertechnology Announces Restructuring Actions

By Tamara Parker • Tuesday, September 24 15:17 • Permanent Link

Vishay Intertechnology, Inc. (NYSE: VSH) has announced the implementation of restructuring actions as part of its Vishay 3.0 growth strategy. The restructuring actions include streamlining selling, general, and administrative functions, resulting in approximately 170 employees or 6% of the SG&A workforce receiving severance payments.

Additionally, the company plans to close three manufacturing facilities. A diodes segment back-end facility in Shanghai, China is expected to be closed by the end of 2026, with production transfers completed in phases beginning 4Q 2025. Furthermore, two small facilities in the resistors segment in Fichtelberg, Germany, and in Milwaukee, Wisconsin, are expected to be closed in 2026. As a result, Vishay will reduce its direct labor by approximately 365 employees or 2% of its total manufacturing labor workforce.

The company anticipates pre-tax cash charges of approximately $38 to $42 million, primarily related to severance costs, as a result of these programs, mostly in 3Q 2024. Once fully implemented by the end of 2026, Vishay expects to realize annualized cost savings of at least $23 million, with immediate annualized cost savings of approximately $9 million and approximately $12 million in annualized cost savings beginning 1Q 2025.

Joel Smejkal, Vishay's President and Chief Executive Officer, stated, “As we implement Vishay 3.0, reshaping the company and preparing for our next phase of growth, we continuously task ourselves with identifying opportunities to best foster a business-minded approach to decision making, further enhance our customer first focus and improve cost efficiencies."

The restructuring actions are aimed at eliminating barriers to execution, intensifying the sense of urgency, and optimizing the global manufacturing footprint in line with the company's five-year growth strategy to accelerate revenue growth rate, expand profitability, and drive higher returns.

Following these announcements, the company's shares moved -0.2%, and are now trading at a price of $18.45. If you want to know more, read the company's complete 8-K report here.

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