MILPITAS, CA -- Solectron Corp., a leading electronics manufacturing services provider, will layoff 3,500 workers and take up to $115 million in restructuring charges, 90% in cash.

The company will also close about 850,000 sq. ft. of facilities in Europe and North America.

The company said that it estimates the restructuring plan will be completed by the end of its fiscal third quarter of 2006. Most of the 3,500 employees to be laid off are in locations in Europe.
Solectron said it would take between $100 million and $115 million in charges to cover the layoffs and closures.

The cuts amount to about 6% of Solectron's global workforce. The firm employs about 57,000 workers, according to its Web site.

"These are difficult but necessary actions as we continue to refine our cost structure. By adjusting our capacities and strengthening our position in low-cost geographies we will improve our financial performance," said Mike Cannon, president and chief executive, in a statement.