Texas tech company cuts 58 jobs at Pinellas manufacturing facility
A Texas manufacturer of networking equipment and software is cutting 58 jobs at its Seminole manufacturing facility after outsourcing those operations to an independent contractor.
Dallas-based DZS Inc. announced Wednesday that the move will help the company “meet customer demand and fulfill a growing backlog that’s up more than 300% since 2020,” CEO Charlie Vogt said in a statement Explanation.
The layoffs at the Seminole facility at 7340 Bryan Dairy Road are expected to begin December 5 and continue into the New Year. DZS intends to have its manufacturing, testing and order fulfillment services operational with its new partner, Cayman Islands-based Fabrinet by January 1st.
Harpal Gill, Fabrinet’s president and chief operating officer, said in a statement that the move would make DZS more efficient and increase its profits as it manufactures optical, broadband and cloud computing products and software.
“The overheads of a manufacturing facility, including maintenance and equipment costs, can severely impact a company’s bottom line and slow innovation and implementation,” Gil said.
DZS estimates that the 58 layoffs in Seminole account for about two-thirds of the local workforce. The remaining ones will be relocated. The company also plans to offer job placement support.
“We are extremely grateful for the hard work and dedication shown by DZS’s Seminole-based employees over the years, and the leadership team is committed to supporting them in their efforts to transition to other roles or at the end of their tenure to find new employment.” Norman Foust, DZS senior vice president of global supply chain, said in a statement. “This strategic shift to contract manufacturing is necessary to enable DZS to scale over the next few years to meet our growth goals in North America and Europe, the Middle East and Africa.”
DZS is the second company to announce nearly 60 layoffs in Pinellas County in the past two weeks. On Sept. 23, St. Petersburg-based BayFirst Financial told the state it was closing its Clearwater office and cutting 58 jobs because performance at its home mortgage business had slumped. BayFirst is also laying off another 20 employees in Tampa, Boca Raton, Kissimmee and Clermont.