Kimball Electronics, based in Indiana, is shutting down its Tampa facility and will be letting go of 250 workers following a 71% drop in net income reported earlier this week.
The company revealed the layoffs in an earnings report released on Monday and later confirmed this with a letter added to the state’s Worker Adjustment and Retraining Notification database on Wednesday afternoon.
The letter indicates that the layoffs are set to start on January 5 and will be fully concluded by June 30, in compliance with federal WARN requirements.
Richard D. Phillips, the CEO of Kimball, announced in the earnings report that the company is closing the facility located at 13700 Reptron Blvd. This decision is part of a strategy to optimize capacity across its global operations and enhance the efficiency of its operating structure.
According to Phillips, production is set to stop by year-end, with the plant shutting down in the first quarter of the next fiscal year. The operations will move to locations in Mexico and Jasper, Indiana, where the company’s headquarters are situated.
“This decision is based on the preferences of our customers, our outlook for U.S. manufacturing, and an objective to improve the company’s competitive positioning in the market, strengthen the balance sheet, increase liquidity, and improve financial flexibility.”
In the first quarter of fiscal year 2025, Kimball reported a significant decline in net income, which dropped 70.6% to $3.154 million compared to the same period last year. The latest earnings report from August revealed a 62.2% decline in annual net income for the most recent fiscal year.
Kimball Electronics operates as a worldwide electronics and diversified contract manufacturer, with facilities located in the U.S., China, Mexico, Poland, Romania, and Thailand.
The company’s website states that its Tampa facility spans 150,000 square feet and provides electronics manufacturing and rapid prototyping services.
In the earnings report regarding the closure, Phillips mentions that the plant provided ventilators “to those in need” during the pandemic.