07:49 AM EDT, 09/24/2024 (MT Newswires) -- Vishay Intertechnology ( VSH ) said Tuesday that it would implement restructuring actions to optimize its manufacturing footprint and streamline business decision-making as it executes its Vishay 3.0 growth strategy.

The company said the restructuring actions would be implemented in phases and include streamlining its selling, general, and administrative functions by reducing about 170 employees, with severance payments starting immediately and continuing through Q4 2025.

Additionally, the company said three manufacturing facilities would be closed, including a Diodes segment facility in Shanghai by the end of 2026 and two smaller Resistor segment facilities in Germany and Wisconsin in 2026, affecting about 365 manufacturing jobs.

It added that its restructuring efforts would also involve various changes in operations, leading to severance payments for about 260 employees.

The company anticipates pre-tax cash charges of $38 to $42 million, mainly for severance costs incurred primarily in Q3.

Vishay Intertechnology ( VSH ) said upon full implementation of the plan by the end of 2026, the restructuring is expected to yield annualized cost savings of at least $23 million.