ST. PETERSBURG, FL – With expenses continuing to rise due to the Covid-19 pandemic, Jabil said it would cut its workforce globally by 1,500. The moves will save the EMS company $50 million a year.

"As we sit here today, the impact of Covid will cost us roughly $160 million to $170 million for fiscal year 2020," said Mark Mondello, CEO, Jabil. "Therefore, we are taking aggressive actions to reshape the organization. We will reduce our workforce and, in return, lower our cost structure by $50 million."

Jabil had fiscal third quarter revenue of $6.3 billion, up slightly year-over-year, beating expectations. But it forecasts sales to drop 5% year-over-year in the fourth quarter, with EMS revenue expected to fall 8%.

The moves will affect 118 of 2,320 St. Petersburg employees, according to reports. The firm did not disclose other staffing reductions by location.

Jabil expects the effects of Covid-19 to continue well into 2021. "To have this feeling like Covid’s behind us, the stock market’s doing great, the world’s getting back on its feet — I don’t think that’s the case," Mondello said.

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