Orbotech laying off over 100 employees after closing flat panel display division
Orbotech laying off over 100 employees after closing flat panel display division
The Israeli company is a subsidiary of KLA Corporation after being acquired for $3.4 billion five years ago
American company KLA informed more than 100 Orbotech employees in Yavne that they are being laid off following the closure of the FPD (flat panel display) division, Calcalist has learned. This was one of the two main divisions of Israeli company Orbotech, acquired by KLA in 2019 for $3.4 billion.
Orbotech specializes in developing systems for testing machines used in the production of printed circuits and flat screens, primarily selling to customers in the Far East. In recent years, KLA has experienced a slowdown across all its business sectors, prompting previous rounds of personnel cuts.
Orbotech's traditional activities have exhibited notable weakness in recent quarters. The entire division dedicated to test systems for printed circuits and flat panel displays accounted for only about 3% of KLA's revenues, totaling $283 million in 2023, representing a 48% decrease. When combined with revenues from other services provided by Orbotech, annual turnover reached half a billion dollars, but even this figure reflects a sharp decline of 34%. The weakness in this sector mainly reflects a slowdown in investments and demand in the consumer electronics market.
KLA stated in response: "KLA announced today a strategic decision to close the equipment division for flat panel display manufacturers due to a continuous decline in this market and the cancellation of a project with a major customer. We are committed to providing continued support to existing customers, as we have already informed them. We maintain our full commitment to our business activities in other divisions and to the demands of the electronics, advanced packaging, and components market, preparing for renewed growth across all areas of the company's activities, in accordance with forecasts."
