VERNON HILLS, IL –
Zebra Technologies will consolidate its supplier base and transfer thermal printer assembly to
Jabil Circuit. The companies did not disclose the value of the deal.
In addition, Zebra will establish regional distribution and configuration centers, and cut 650 production-related positions.
The transfer of printer assembly operations from Zebra's plants in California and Illinois to Jabil's facility in HuangPu, China, will occur within the next 18 to 24 months.
Zebra will continue to maintain operations in California and Illinois.
Zebra will take estimated charges of $24 million to $26 million for severance, professional services and other associated non-recurring costs. Of these charges, the company expects to incur approximately $18 million in 2008, with the remaining amount occurring in 2009.