Make us your home page
Instagram

Jabil Circuit to cut 3,000 jobs worldwide

ST. PETERSBURG — Electronics manufacturer Jabil Circuit announced Wednesday that it is cutting 3,000 jobs worldwide, but none will be lost at its headquarters in St. Petersburg.

The company's reductions, forced by slumping demand for its products during a recession, amount to about 3.5 percent of a workforce of about 85,000.

Jabil officials said Wednesday that about 10 of its global plant sites will be affected, and about 10 percent of the cuts will take place in the United States. The company employs people in 20 countries.

The company expects $55 million a year in cost savings as a result of the cuts, and will take a related pretax charge of about $65 million over fiscal 2009 and 2010.

"The good news is that it's not affecting us locally," said Jabil spokeswoman Beth Walters. "That's a good thing for this community."

Walters said the company is eliminating jobs in places where demand has fallen and staffing hasn't been reduced enough to match the loss.

The St. Petersburg facility, which now employs about 1,800 people, has lost at least 253 employees since September, including its most recent layoff of 133 workers on Dec. 1.

But Walters didn't rule out the possibility of more local job losses in the future. She was reluctant to describe business in the Tampa Bay area as any better than other locations.

"We are very committed to the area, very committed to staying here," Walters said. "But I can't predict the future."

The cuts last year coincided with Jabil's agreement with the city to build a new world headquarters and add 858 high-paying jobs in exchange for $34.4 million in economic incentives. The state, county and city would pay the incentives after Jabil meets its obligations.

The Fortune 500 company's headquarters is on Dr. Martin Luther King Jr. Street N, in the Gateway area.

It promised to build and equip a new base of operations along Gandy Boulevard in north St. Petersburg, and also create manufacturing, research and development facilities, with total construction estimated at $54 million.

The state's contract with Jabil allows the company to request a one-time delay of up to two years. The company said in December it will decide whether to pursue an extension based on its performance during the next several months.

Jabil Circuit to cut 3,000 jobs worldwide 01/28/09 [Last modified: Wednesday, January 28, 2009 11:28pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Times Staff Writer.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Unlicensed contractor accused of faking death triggers policy change at Pinellas construction licensing board

    Local Government

    The unlicensed contractor accused of faking his death to avoid angry homeowners has triggered an immediate change in policy at the Pinellas County Construction Licensing Board.

    Last year Glenn and Judith Holland said they paid a contractor thousands of dollars to renovate their future retirement home in Seminole. But when they tried to move in on Dec. 14, they said the home was in shambles and uninhabitable. They sent a text message to contractor Marc Anthony Perez at 12:36 p.m. looking for answers. Fourteen minutes later, they got back this text: "This is Marc's daughter, dad passed away on the 7th of December in a car accident. Sorry." Turns out Perez was still alive. Now the Hollands are suing him in Pinellas-Pasco circuit court. [LARA CERRI   |   Times]
  2. SeaWorld shares drop Monday to 2017 low after disclosure of federal subpoena

    Tourism

    The Orlando parent company of SeaWorld and Busch Gardens theme parks saw its stock drop 3.5 percent Monday to $15.10, its lowest price of this year.

    Killer whales perform at Shamu Stadium at SeaWorld in Orlando in 2011, before public pressure was placed on the theme park company to curtail its orca shows.SeaWorld has since announced an end to the traditional killer whale entertainment  at its theme parks. [AP Photo/Phelan M. Ebenhack]
  3. Rick Scott appoints longtime ally Jimmy Patronis as Florida CFO

    State Roundup
    Rick Scott appoints Jimmy Patronis (background) as CFO. [STEVE BOUSQUET | Tampa Bay Times]
  4. Local gas prices plummet as Fourth of July holiday travel approaches

    Tourism

    TAMPA — Local gas prices are enjoying an unseasonal dip around the $2 mark just in time for the hectic Fourth of July holiday travel weekend.

    The price of regular unleaded gasoline has dropped to $1.99 at a Rally station on Pasadena Ave. South and Gulfport Boulevard South, South Pasadena.
[SCOTT KEELER   |   Times]

  5. Air bag recalls, lawsuits lead Takata to file for bankruptcy

    Autos

    Shattered by recall costs and lawsuits, Japanese air bag maker Takata Corp. filed Monday for bankruptcy protection in Tokyo and the U.S., saying it was the only way it could keep on supplying replacements for faulty air bag inflators linked to the deaths of at least 16 people.

    Japanese air bag maker Takata Corp. CEO Shigehisa Takada bows during a press conference in Tokyo on Monday. Takata has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of defective air bag inflators.
[(AP Photo/Shizuo Kambayashi]