Jabil plans a Florence plant closure affecting 108 workers

One Florence site

Jabil plans to close one of its three Florence, Kentucky, facilities on Dec. 6, 2024, affecting 108 workers. The other two local sites will be unaffected. A Sept. 30 Worker Adjustment and Retraining Notification Act notice set out the closure, as Manufacturing Dive reported. A customer moved operations to another Jabil location, a company spokesperson explained; contractual obligations prevented disclosure of its identity.

Jabil is assessing transfers to its remaining Florence facilities. The company promised severance and career outplacement assistance for employees who do not transfer, and encouraged applications for other vacancies. Its contract-manufacturing customers include Johnson & Johnson, Amazon, Intel, Tesla, Samsung and Nespresso; the relocated customer remains unidentified.

Group restructuring estimates

Jabil’s board approved its 2025 Restructuring Plan on Sept. 24, 2024. The programme covers headcount reductions across selling, general and administrative functions and manufacturing, alongside capacity realignment. Certain location decisions and their timing remain subject to consultation with employees and their representatives. Jabil disclosed the approval in its Sept. 26 filing, with these estimated financial effects:

• Approximately $150 million–$200 million in pre-tax restructuring and related costs during fiscal 2025.
• Approximately $100 million–$130 million in net cash spending across fiscal 2025 and 2026.

The estimates cover the company’s restructuring programme. Transition timetables, employee consultations and statutory severance requirements in the affected jurisdictions will influence the final charges and cash flows. Jabil had not finalised their exact timing or the estimated ranges by cost category. Actual amounts and timing could vary; the estimates exclude potential income-tax effects. Jabil would amend its filing as required when the programme’s details and cost estimates were refined.

A wider manufacturing network

Jabil’s global headquarters are in St. Petersburg, Florida, in the United States. Its worldwide network includes more than 100 sites as of its fourth-quarter fiscal 2024 briefing, across Asia, Europe and the Middle East, and the Americas. Florence is among the American locations, alongside cities including Lexington, Memphis and West Chester.

Jabil’s new business segments comprise Regulated Industries, Intelligent Infrastructure, and Connected Living & Digital Commerce. Their listed markets range from automotive and transportation, healthcare and packaging, and renewables and energy infrastructure to cloud and data-centre infrastructure, networking and communications, and capital equipment. Connected Living & Digital Commerce includes warehouse automation, robotics and robots or humanoids among its markets.