EMCORE Corporation Announces Restructuring Program to Scale Inertial Navigation Business and Reduce Costs
EMCORE Corporation, the world's largest independent provider of inertial navigation solutions to the aerospace and defense industry, has announced a restructuring program that includes shutting down its Broadband business segment and discontinuing its defense optoelectronics product line. The move is aimed at reducing annual costs and expenses by approximately $12 million and focusing entirely on scaling EMCORE's inertial navigation business.
EMCORE Corporation will shut down its Broadband business segment, which includes cable TV, wireless, sensing, and chips. EMCORE will also discontinue its defense optoelectronics product line. Jeff Rittichier, President and Chief Executive Officer of EMCORE, said that the restructuring represents the final phase of EMCORE's transition to Aerospace and Defense. The move is expected to eliminate product lines that are no longer part of EMCORE's future.
The restructuring program includes a reduction in the workforce of approximately 100 employees, primarily in Alhambra and China. EMCORE will also consolidate facility space by downsizing the space being occupied at the Alhambra campus from five to two buildings and relocating Concord personnel to the operations area from the adjacent office building. Additionally, the manufacturing support and engineering center in China will be closed.
The restructuring actions are expected to be substantially completed by September 30, 2023. A restructuring charge covering severance, facility consolidation, and other related items is expected to be finalized and recorded in the quarter ended June 30, 2023 (fiscal 3Q23).
Jeff Rittichier expressed his gratitude to the employees who are affected by the restructuring program. He said, "To employees who are affected directly, we express our sincere gratitude for your service to EMCORE. We appreciate your efforts and dedication, and wish you the very best in your future endeavors."
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