Irish headquartered PCH, which cut 250 jobs in China earlier this year, has announced a voluntary redundancy programme for up to 1,500 employees in the region.
The company said the introduction of the programme was linked to a decision to primarily focus on value added services for customers developing Internet of Things (IoT), wearables and connected products for the health, beauty and luxury sectors.
While the vast majority of job losses will occur in China, the company said some global support services would also be impacted.
PCH said it will continue to offer its global customers core supply chain services in China - manufacturing, packaging, and fulfillment, and advanced product design engineering and development in San Francisco.
PCH designs custom product solutions for start-ups and Fortune 500 companies. In recent years, it has invested heavily in engineering facilities in Silicon Valley, acquiring Lime Lab in 2012 and opening the PCH Innovation Hub in 2013.
Founded by Liam Casey in Cork in 1996, the company was previously best known for making smartphone accessories. However, it has gradually shifted towards more higher-end products and services.
Among its most recent deals was a collaboration with L’Oreal to produce wearable sensors and backing early-stage hardware projects to help promote innovation.
The decision to cut jobs earlier this year was due to a reduction in the need for the factory level engineering services it previously provided in China.
Mr Casey told The Irish Times the voluntary redundancy programme was needed to support the company’s long-term profitable growth.
“We’re seeing companies in the health, beauty and luxury industries all now getting into the IoT and connected devices space and for us that creates a great opportunity. We are focusing resources on that area instead of some of the lower-margin commoditised packaging products that are very labour intensive and in which the returns haven’t been great,” he said.
“This is a tough decision but over the long-term this is the right decision for the business,” Mr Casey added.
