ATS Automation announces closures, layoffs in transportation segment

ATS Automation Tooling Systems plans to close several of its facilities and lay off staff, primarily in Europe and Asia, in response to the downturn in transportation markets brought on by the COVID-19 pandemic.

The Cambridge, Ontario–based automation solutions provider expects to complete the restructuring by the end of the company’s fiscal year.

ATS develops custom automation, repeat automation and automation products for customers in several markets including life sciences, transportation, consumer products and energy.

Management expects to incur total restructuring costs of approximately $24 million. Costs will be incurred during the second and third quarters of the current fiscal year.

“This action is necessary to align the capacity and cost structure of our business to current and expected conditions in the transportation market,” says Andrew Hider, chief executive officer, in a statement.

“By implementing the plan now, we will help to mitigate against future margin erosion and emerge to serve transportation customer opportunities that are aligned with our technologies, capabilities and objectives for value creation.”

The company has not disclosed the number of jobs that will be affected.

Founded in 1978, ATS employs approximately 4,400 people at 22 manufacturing facilities and over 50 offices in North America, Europe, Southeast Asia and China.