Irvine-based Meade Instruments Corp., a telescope maker, on Thursday said it is closing its local manufacturing facility and sending jobs to Chinese and Mexican facilities.
About 120 jobs are set be cut in Irvine by the end of February.
“We believe that transferring the remainder of our manufacturing operations to lower-cost areas will enable the company to compete more effectively with its competitors and at the same time enhance gross and operating margins,” Chief Executive Steve Muellner said in statement.
The company said it expects to save about $10 million a year from the move.
It also expects a $500,000 charge from severance costs.
Meade also said it would discontinue its high-end telescopes while increasing the production of its lower end ones to improve profitability.
It has a market value of $32 million, and about $8 million in debt on its books.
Second-quarter revenue showed a 12% decline from a year ago on sales of about $16 million.
Earlier this week, the company said it hired Robert W. Baird & Co. to assist it with alternative plans for its growth.
