MANILA, Philippines — Ayala-led Integrated Micro-Electronics Inc. (IMI) is streamlining its operations through various global restructuring initiatives to boost profitability and operational efficiency.
The global provider of electronics manufacturing services said IMI USA would discontinue its prototyping and manufacturing operations by the end of 2024 as part of the strategic restructuring.
IMI USA’s production functions will be transitioned to the company’s facilities across North America, Europe and Asia.
It will also enter into a pivotal partnership with California-based XLR8 Corp.
Under the agreement, IMI will channel prototyping needs of selected customers to XLR8, a company renowned for its prototyping expertise.
XLR8 will transition mass production projects to IMI as its preferred manufacturing partner.
In Asia, IMI said it would be closing its sales office in Japan and will soon initiate the process of the dissolution of the entity in a move to better align support costs with current business needs.
According to IMI, there is also an ongoing downsizing of the Singapore office, including closing of the Malaysia branch.
“These activities are part of IMI’s ongoing commitment to streamline operations and drive improved margins across its global footprint,” it said.
Louis Hughes, who was appointed as chief executive officer of IMI last May, earlier said that work that must be done to bring the company back to better profitability.
Hughes said the company has initiated various activities aimed at fortifying its financial health, enhancing operational effectiveness and delivering greater value to its stakeholders.
As a result of these efforts, IMI has slashed significantly its net loss to $8.8 million in the first half from the $83.66 million net loss incurred in the same period last year.
IMI remains committed to navigating market challenges and ensuring continued innovation and customer satisfaction across its global operations.