IMI, which produces essential electronic components for a wide variety of sectors, said the move was part of its “global restructuring efforts aimed at boosting profitability and operational efficiency.”
Measures include plans to dissolve physical operations in Japan and downsizing its Singapore and Malaysia offices.
“IMI will also be closing its sales office in Japan and will soon initiate the process of the dissolution of the entity,” the company said.
“IMI’s extensive sales team, strategically positioned across various regions, will continue to address opportunities in Japan, eliminating the need for a physical office and reducing overhead costs,” it added.
IMI USA partnered with California-based manufacturer XLR8 Corp. for its prototyping needs. This allows the firm to discontinue these services in the US.
“Under this new agreement, IMI will channel prototyping needs of selected customers to XLR8, while XLR8 will transition mass production projects to IMI as its preferred manufacturing partner,” IMI said.
“Consequently, IMI USA will discontinue its prototyping and manufacturing operations by the end of 2024, with production functions to be transitioned to IMI facilities across North America, Europe, and Asia,” it added.
Cutting losses
IMI dramatically cut losses in the first semester of 2024 to $8.77 million, an improvement of 89 percent, its latest financial report showed.
The business continues to face challenges as revenues fell 18 percent to $565.8 million, while gross profit slumped by 23 percent.
This was also reflected in the company’s share price, which has plunged nearly 44 percent since the start of 2024. IMI shares rose 1.1 percent to P1.83 each on Tuesday.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
