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Economy / Business

Jabil Plans Job Cuts To Save 50 Million Dollars

Jabil workers montage
Jabil
Jabil's third quarter earnings presentation included the news that the company would enact aggressive cost saving measures to offset projected losses of 160 to 170 million dollars due to the coronavirus.

Manufacturing company Jabil plans to scale back its workforce due to the coronavirus.

During a third-quarter earnings call Friday, CEO Mark Mondello said the company needs to be proactive in the face of the pandemic.

“The impact of COVID will cost us $160 to 170 million for fiscal year 2020," Mondello said. "Therefore, we’re taking aggressive actions to reshape the organization...We’ll reduce our workforce and, therefore, lower our cost structure by $50 million."

According to the Tampa Bay Times, Jabil plans to let go of about 1,500 employees worldwide, including 118 at its St. Petersburg headquarters.

Mondello acknowledged the workers who would be losing their jobs or otherwise be affected by expressing "appreciation for those impacted by this difficult decision. Yet, a decision that’s correct for the business."

"We’ve done our very best to ensure that everyone is treated with complete respect, care, and dignity," Mondello said.

The Times also reported that Mondello, along with his executive team and members of the company's board of directors, took a 25 percent reduction in pay in June and will forego bonuses. Those cuts will stay in place at least until November 30th.

Jabil is one of the largest businesses based in the Tampa Bay area. The company makes parts for smartphones, appliances and other electronics.

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