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Telecommunications equipment industry

SCI Systems Lays Off 150 Workers at Colorado Plant Amid Reduced Orders

Strategic Insights

— 1 min read

SCI Systems, a contract manufacturer of computers and components, has unexpectedly laid off 150 workers at its Fountain plant in Colorado due to reduced orders from a major customer. The company, which employs approximately 18,500 people internationally, had given no advance notice to those affected, leaving them with letters stating that they were part of the reduction in workforce. SCI's CEO, Olin King, attributed the layoffs to the reduced orders, which he described as a customer-specific issue, although he did not disclose the identity of the customer.

Key Takeaways:

  • SCI Systems laid off 150 workers from its Fountain plant in Colorado, citing reduced orders from a major customer.
  • The layoffs were given without advance notice, and employees received letters stating that they were part of the reduction in workforce.
  • SCI's CEO, Olin King, attributed the layoffs to the reduced orders, which he described as a customer-specific issue.
  • The company is working to bring in additional customers to pick up the workload at the affected plant.
  • None of SCI's other operations are affected, including a Colorado Springs component plant that employs approximately 1,000 workers.
  • SCI Systems employs approximately 18,500 people internationally and generated $5.8 billion in sales last year.
  • The reduced orders that led to the layoffs may be related to the troubled Asian economies, but King stated that it is a customer-specific issue.
  • The SCI Systems' Colorado plant has approximately 1,000 workers, and the company bought the plant from Apple Computer in 1996, retaining the majority of the original Apple workforce.

Statistics:

  • 150 workers were laid off from SCI Systems' Fountain plant in Colorado.
  • Approximately 18,500 people are employed by SCI Systems internationally.
  • SCI Systems generated $5.8 billion in sales last year.
  • 1,000 workers remain employed at the SCI Systems' Colorado plant.
  • 1,000 workers are employed at SCI Systems' Colorado Springs component plant.
  • 150 workers were given notice that they were part of the reduction in workforce.
  • The layoffs were described as a necessary reduction due to reduced orders.

Sources:

  • "No explanation given for SCI Systems layoffs" - Dick Foster, Rocky Mountain News Southern Bureau (dated January 1998)
  • SCI Systems' 1997 Annual Report
  • Interview with Olin King, SCI Systems' CEO

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