e2v Layoffs

Le Figaro (in French) reported that e2v announced its intention to eliminate 221 jobs, or nearly 50% of its workforce at its site in Saint-Egrève, near Grenoble. Bought in 2006 from Atmel, San Egrève site manufactures semiconductors for medical imaging, equipment and aircraft and employs 462 people. "The activity of semiconductors remains strong but we have suffered several setbacks including the dental medical imaging," the HR Director Philippe Fourcade Prat said. According to the union CFE-CGC and CFDT, the layoffs are mainly affecting the technicians of the company.

The planned layoffs and restructuring information has been circulating for few weeks already. UK Business Weekly reported that in the last 12 months, in particular since December 2008, e2v has seen a progressive weakening in demand across some of its commercial and industrial market sectors and in its medical market sector. Sales for the six months ended 30 September 2009 was down on the previous year at £96m (H1 2008/9: £107m) and pretax profit dropped to £2.6m (H1 2008/9: £3.1m).

e2v, which has some 1,700 staff, has already reduced headcount by over 130 staff in the last six months, reduced hours in the UK and USA, extended summer closure of the facility in Grenoble, France and closed its long range ‘Biosensors’ program in June 2009, just 10 months after its relaunch.

Having also decided to suspend its acquisition program and not pay an interim dividend for the 2009/10 year, e2v will also completely restructure its French operation and close down its Lincoln, UK manufacturing site.

In Grenoble, France, the company intends to refocus the operations associated with the imaging devices division around a fabless CMOS business model, complementing activity to the CCD-focused imaging operations in the UK.

In Lincoln, UK, where e2v has 160 employees, the company will close manufacturing activities and consolidate them at other UK sites, though the company says it is eager to keep key engineering and design jobs going and may create an engineering center in the city. Further restructuring may also take place at its Chelmsford, UK headquarters.

Thanks to T.B. for the information!