Tyco Electronics, which acquired ADC Telecommunications of Eden Prairie last summer for $1.25 billion in cash, will lay off 248 of the 700 employees at the former ADC manufacturing plant in Shakopee.
The layoffs are part of a plan to relocate the work to Juarez, Mexico, and Santa Teresa, N.M., said Mike Ratcliff, a Tyco Electronics spokesman. The manufacturing work done in Shakopee includes plastic molding and sheet-metal fabricating and painting.
In addition, the underused former ADC headquarters in Eden Prairie will be vacated and sold by next fall, said the company, which is based in Switzerland and has its U.S. headquarters in Berwyn, Pa. Its acquisition of ADC closed in December.
The sale of the former ADC headquarters building comes as little surprise, because even as an independent company ADC had too few employees to make full use of it. The headquarters was built before the burst of the dot-com bubble on Wall Street in 2001, a time when ADC had 22,400 employees worldwide. By the time ADC was sold, it had shrunk to 9,500 employees around the world.
The layoff in Shakopee is the largest group of jobs lost at the former ADC operations since July, when Tyco Electronics announced the acquisition.
ADC had about 1,000 Twin Cities employees at the time, but that number dwindled to 900 over several months, largely as a result of Tyco eliminating jobs at ADC headquarters, Ratcliff said.
The 8,500 former ADC workers that were outside the Twin Cities also have been affected by layoffs, but Tyco Electronics doesn't break those numbers out of its 13,000-employee worldwide workforce, Ratcliff said.
When the 248 layoffs are completed in September, the Shakopee plant will have about 450 employees in manufacturing , research and development, engineering and administration, Ratcliff said.
Tyco Electronics then plans to move the remaining 200 former headquarters workers to the Shakopee plant, which will become Tyco Electronics' only Twin Cities location, he said. Before the acquisition, Tyco Electronics did not have any employees based in the Twin Cities.
Steve Alexander • 612-673-4553