Jabil plans to cut over 200 workers

St. Petersburg-based manufacturing tech giant Jabil is laying off 205 employees at two of its facilities on the West Coast. 

The majority of the planned job cuts will impact manufacturing workers in northern California, according to a worker adjustment and retraining notification (WARN) filed by the company.

The layoffs, commencing March 7, will affect 39 workers in Livermore and 166 workers in Fremont. 

The new layoffs come shortly after Jabil (NYSE: JBL) notified the Golden State’s Employment Development Department late last year that it was laying off 1,364 California employees and temporarily closing six plants.

“Jabil must continuously optimize operations and align manufacturing capacity to meet the needs of a dynamic marketplace,” a Jabil spokesperson shared in a statement. “Based on a change in customer demand and business needs, we have made the difficult decision to reduce the number of employees at our Fremont and Livermore sites.” 

Jabil will assist impacted employees with severance benefits, a COBRA (consolidated omnibus budget reconciliation act) subsidy and outplacement assistance. Employees are also encouraged to apply for open positions within the company or externally, according to the company’s statement. 

Jabil has over 250,000 employees across 100 locations in 30 countries. The company works with major clients such as Amazon, Tesla, Apple, and Johnson and Johnson. 

In 2022, Jabil earned $33.5 billion in net revenue. In the first quarter of 2023, the company earned $9.6 billion in net revenue, according to Jabil’s quarterly reports. 

Jabil will release its 2023 second-quarter revenue results next week, which is expected to range between $7.8 billion to $8.4 billion.

Jabil is also experiencing a new leadership makeup. CEO Mark Mondello will be stepping down from the top post and Kenny Wilson, a senior executive, will take the reins as the company’s new CEO starting May 1.