Cohu Announces 2025 Strategic Restructuring Program

Cohu, Inc. (NASDAQ: COHU) announced on February 24, 2025, that it has initiated a strategic restructuring program designed to reposition the company and improve its cost structure amid a continued downturn in the semiconductor test and inspection equipment industry.

The restructuring program, approved internally on February 19, 2025, will involve consolidating operations currently based in La Chaux-de-Fonds, Switzerland, and Kolbermoor, Germany, into other lower cost locations owned by the company. In addition to these geographic consolidations, Cohu plans to reduce headcount in its U.S. and Asian operations—a move that will involve negotiations with the microtechnology and Swiss watch trade union as well as the German labor organization representing affected employees.

As part of the restructuring, Cohu anticipates pretax charges related primarily to severance and other termination benefits in the range of $6.1 million to $7.2 million, in accordance with ASC 420, Exit or Disposal Cost Obligations. These costs are expected to be incurred predominantly in cash and will be recognized throughout fiscal 2025, with expenses allocated to the Semiconductor Test & Inspection segment.

An investor presentation titled “Restructuring Summary of Cohu, Inc.,” dated February 24, 2025, which provides an overview of the program, has been made available through the company’s investor relations website. The presentation contains forward-looking statements concerning the restructuring plan, and while Cohu intends to use this material in future investor presentations, the company disclaims any obligation to publicly update or revise these expectations.

Cohu’s actions aim to optimize its operational facilities and transition manufacturing to regions with lower costs, ensuring that the company is better positioned in an industry facing significant economic pressures. Investors are encouraged to monitor the Investor Relations section of Cohu’s website for ongoing updates and additional disclosures.

The filing was made via Form 8-K with the Securities and Exchange Commission, confirming the company’s commitment to transparent communication with its stakeholders regarding the steps it is taking to address the challenges in its market environment.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cohu’s 8K filing here.

About Cohu

Cohu, Inc, through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors.