Southwire announces major facilities restructuring

Southwire has unveiled a significant restructuring plan aimed at optimizing its distribution footprint and enhancing customer service across North America. The company has announced the closure of three California facilities and a reduction in workforce, marking a strategic shift in its operations.

Three Southwire facilities in California are slated for closure: Santa Fe Springs and Livermore, both closing on October 1, and Rancho Cucamonga, closing on November 1. Each of these facilities has played a crucial role in Southwire’s West Coast operations. The Rancho Cucamonga Customer Service Center (CSC) has been the primary location supporting Infrastructure Products and Electrical Products and Engineered Solutions (EP & ES) since 2005. The Livermore facility, acquired in 2020 with the purchase of Construction Electrical Products (CEP), has contributed to EP & ES growth. The Santa Fe Springs facility has primarily supported EP & ES operations since 2019.

Southwire plans to relocate operations from the closing facilities to other existing Southwire locations. This move is designed to leverage the company’s geographic spread and take full advantage of its existing network of facilities. In addition to the facility closures, Southwire is reducing the number of sales and support roles within its EP & ES business. This decision comes in response to shifting market conditions.

The company has outlined measures to support affected employees. Impacted team members will have the opportunity to apply for open positions within the company. Those who do not transfer to another Southwire position and remain satisfactorily employed through their termination date will be offered separation pay.

Aaron Asher, Southwire’s senior vice president of Customer Experience, emphasized that these changes are aimed at improving customer experience and optimizing distribution and manufacturing networks to achieve best-in-class customer service. Peter Lugo, senior vice president of EP & ES, acknowledged the difficulty of the decision and assured that affected team members would be treated with dignity and respect throughout the transition.

The restructuring is part of Southwire’s broader strategy to align itself better with market demands and customer needs. By consolidating operations and optimizing its distribution network, the company aims to enhance its ability to meet customer needs more effectively throughout North America.