ATS reorganizes its transportation business to mitigate COVID-19 impact
Includes the closure of facilities along with workforce reductions, primarily in Europe and Asia.
CAMBRIDGE, Ont. — ATS Automation Tooling Systems Inc. is reorganizing to help mitigate the expected impact of a downturn in its transportation markets brought on by the COVID-19 pandemic.
The automation company based in Cambridge, Ont. said the reorganization is expected to be completed by the end of the fiscal year and includes the closure of facilities along with workforce reductions, primarily in Europe and Asia.
The company did not provide details of affected operations and number of employees involved, but it expects to incure restructuring costs of approximately $24 million.
“This action is necessary to align the capacity and cost structure of our business to current and expected conditions in the transportation market,” said ATS CEO Andrew Hider. “By implementing the plan now, we will help to mitigate against future margin erosion and emerge to serve transportation customer opportunities that are aligned with our technologies, capabilities and objectives for value creation.”
ATS revenues come from four vertical markets: life sciences (55%), transportation (26%), consumer (12%) and energy (7%).
The company employs approximately 4,400 people at 22 manufacturing facilities and over 50 offices in North America, Europe, Southeast Asia and China.