Conner Peripherals Inc delivered a nasty blow to Irvine, Ayrshire yesterday when it announced that it had reached agreement with the authorities in Scotland for it to suspend manufacturing operations there, and confine the site to European distribution and service. The move means that 200 of the 300 employees at the site will lose their jobs at the end of the year, leaving 100. Under the agreement, Conner will review its worldwide manufacturing requirements and capacity annually to determine whether conditions might support resumption of manufacturing in Irvine. Earlier this month, Conner reported a net loss of $372m, after restructuring charge of $78m, write-downs of $213m in goodwill and intangibles, and $39m for other contingencies.
