In July 2020, the Company executed it plans to reduce headcount, which impacted 307 full-time equivalents (“FTEs”),  representing 287 FTEs in its Zacatecas facility and 20 FTEs located in the U.S.  A restructuring charge of $1,163 was recorded during the three months ended September 27, 2020.  The remaining restructuring accrual as at September 27, 2020 was $194 and is scheduled to be paid by the end of December 2020.    

Dongguan facility closure

In September 2019, the Company announced it plans to close its Dongguan manufacturing facility in China, concurrent with the expiration of the facility lease in December 2019, which was extended to February 2020. The closure was formally approved by the Board of Directors in September 2019.  A restructuring charge of $5,000 was recorded in the twelve months ended December 29, 2019 relating to the announced planned closure. The closure of the Dongguan facility resulted in a reduced labor force by approximately 137 employees. The employee group was notified of the closure in the last week of September 2019. The closure of the Dongguan facility and majority of the cash outflows associated with   severance and other exit costs which was substantially completed by the end of the first quarter of 2020. During the nine months ended September 27, 2020, restructuring recoveries were recorded of $753 primarily related to shipments and cash payments received on previously provisioned Dongguan inventory, in addition to restructuring reversals as actuals payments were less than anticipated.  Remaining activities include a small number of support staff performing administrative duties, professional services to be rendered with respect to the closure activities, taxes and duties to be settled in addition to severance payments.  Substantially all of the costs are anticipated to be spent by the third quarter of 2020.  Manufacturing by the Company of certain products previously manufactured at the Dongguan facility has been transferred to the Company’s other manufacturing facilities. As at September 27, 2020, the Company had $17 of accrued restructuring charges remaining related to Dongguan to be paid by the end of the fourth quarter of 2020 primarily related to employee severance and legal fees.

Restructuring Liability