Digi axes 60 jobs as it outsources manufacturing
April 12, 2018
IoT connectivity company Digi is to cut 60 jobs at its Eden Prairie plant in Minnesota as it moves product production to contract manufacturers.
The 60 jobs represent about ten per cent of its global workforce and the company says it will try to find new positions within the company for the affected employees.
Digi will transfer the manufacturing functions of its Eden Prairie operations facility to existing contract manufacture suppliers. The company says this will help it focus on new product introduction.
The current facility will continue to house the operations team, which will support contract manufacturers as well as oversee the planning and procurement of finished goods and product fulfilment, logistics and quality.
"Digi manufacturers approximately 85 per cent of its products through contract manufacturers," said Ron Konezny, president and CEO of Digi International. "Moving the remaining portion to existing providers minimises disruption. Unfortunately, there will be a number of Digi employees affected. We are working hard to ensure a smooth transition and we're confident that this decision will benefit Digi's customers and partners."
As a result of the shift in manufacturing operations, approximately 60 positions in the Eden Prairie facility will be eliminated in a staged fashion over the next 120 days. Digi employs approximately 600 people globally.
• Digi has appointed Chris Bowen as vice president of sales for the EMEA region. Bowen has more than 21 years of sales management experience, the vast majority of which focused on EMEA, along with stints in the USA and Apac.
Most recently, he was vice president, worldwide automotive, and general manager of Macronix in Europe. Prior to Macronix, Bowen held various direct and channel sales and leadership positions with Spansion, Fujitsu Microelectronics and Avnet.
“Digi’s world-class suite of solutions and services is ideally suited to match the needs of the rapidly growing IoT marketplace,” said Bowen. “Digi’s innovative, customer-focused portfolio provides a great basis for continued growth in EMEA, and I am really excited to be entrusted to lead those efforts.”
In his new function, Bowen will lead Digi International’s sales team in EMEA, a region the company has targeted as an opportunity for growth. Bowen will direct sales, channel and marketing activities from the Munich office.
“We are thrilled that Chris has joined the Digi International team,” said Mike Ueland, senior vice president at Digi International. “His combination of deep expertise in building a successful sales team in the EMEA region, along with his knowledge of the embedded marketplace is invaluable. Chris cut his teeth in the extremely demanding automotive market. He has a tremendous understanding of how to deliver on the needs of the customer, which is reflected in his years of experience growing revenues and selling technical solutions via direct and indirect channels. We’re confident he’s the perfect person to entrust with our continued growth in EMEA.”
Prior to beginning his career, Bowen graduated with honours from the University of Brighton in the UK with a bachelor of science degree in physics and electronics.