By Liz Segrist
Published Aug. 9, 2012
Simpsonville-based Kemet Corp. plans to lay off 420 employees globally, including 11 layoffs from its Simpsonville operations of Kemet Electronics, according to an SC WARN filing.
Kemet manufactures tantalum, ceramic, aluminum, film, paper and electrolytic capacitors.
The company announced local layoffs at Kemet Electronics in its June WARN filing. Companies must notify state government of upcoming layoffs under the Worker Adjustment and Retraining Notification Act. SC Works publishes the filings.
“While these actions are always difficult when it affects our employees, these actions are necessary to return to sustained profitability for our shareholders,” Kemet CEO Per Loof said in a news release.
Kemet recently announced it will take a charge to earnings related to severance expenses of approximately $8 million to $9 million, of which approximately $7 million will be accrued during the current quarter that ends Sept. 30. The majority of employees have been notified already.
This action will affect the 420 employees that represent 4% of the global workforce. The company expects to save approximately $16 million in its fiscal year ending March 31, 2013, according to a company news release.
Kemet staffs the company to meet its customers’ needs and these layoffs are in response to the current economic situation, said Dean Dimke, Kemet Electronic’s senior director of investor relations.
“Although we are confident that the prior actions we have previously announced, such as our vertical integration of our tantalum supply chain and our film and electrolytics restructuring, will produce the expected benefits this fiscal year and beyond, we believe that it is imperative that we react to the continued economic slowdown,” Loof said.
Kemet’s common stock is listed on the New York Stock Exchange as “KEM.”