The US display manufacturer will consolidate production across the US, Mexico and China, close its Irish manufacturing facility and scale back MicroLED development as part of a global restructuring.
US$18 Million Cost-Cutting Plan: Daktronics to Close Ireland Factory
Daktronics has announced a restructuring of its global manufacturing operations that will see the closure of its factory in Ireland, the consolidation of production across three countries and a reduction in MicroLED development activities.
The Brookings, South Dakota-based company expects the measures to generate more than US$18 million in annualized pre-tax savings once fully implemented by mid-fiscal 2028.
The restructuring will also result in approximately $15.8 million in one-time pre-tax charges, including $7 million during the second quarter of fiscal 2027.
Ireland factory to close
Daktronics plans to phase out manufacturing operations at its Ennistymon, County Clare, facility, with the closure expected to be almost complete by mid-fiscal 2028.
According to The Irish Times, the decision will result in the loss of more than 100 jobs. The facility employed 116 people at the end of April 2025.
Daktronics estimates that closing the factory will generate $7.7 million in annualized pre-tax savings, although the company expects to incur $13.5 million in restructuring charges associated with the closure.
The costs include employee severance, facility shutdown expenses, equipment transfers and potential asset impairments.
The company says it will work with existing customers to fulfill outstanding orders and maintain sufficient spare parts inventory to meet warranty and service obligations.
Production shifts to three countries
Daktronics will redistribute manufacturing capacity across its operations in the US, Mexico and China.
Its new Mexican facility recently completed its first production run, while the company is expanding manufacturing capacity in China through a move to a 355,000-square-foot (approximately 33,000-square-meter) leased facility designed to accommodate automated production.
The company also plans to improve efficiency at its US factories through employee attrition and voluntary departures.
These changes are expected to generate approximately $7 million in annualized savings.
President and CEO Ramesh Jayaraman stated, “Exiting Ireland and aligning our manufacturing capacity will help us manage factory utilization across the network more effectively, improve work force productivity, set the stage for further automation, and streamline procurement initiatives.”
Daktronics says its live events, high school, parks and recreation, international and commercial business units will receive products from all three manufacturing countries, depending on customer requirements and delivery schedules.
North American intelligent transportation systems will continue to be served primarily from US facilities.
MicroLED development scaled back
The restructuring also includes a reduction in MicroLED development activities, although Daktronics will retain the intellectual property it has acquired.
The company expects the move to generate $3.1 million in annualized pre-tax savings, with approximately $1.2 million in associated severance and other costs.
Daktronics will also withdraw from highly customized international transportation projects, a business representing approximately 1.5% of its total revenue.
As part of that change, the company will close its Hong Kong and Macau offices, generating an estimated $300,000 in annual savings.
Savings expected through 2028
Daktronics expects to realize approximately $5 million in savings during the second half of fiscal 2027 and $16 million during fiscal 2028, before reaching its full annualized savings rate of $18 million.
“The anticipated benefits of the initiatives announced today are expected to result primarily from a lower structural cost base, improved manufacturing utilization and productivity, and reduced organizational and operating complexity,” says acting CFO Howard Atkins.
The measures form part of Daktronics’ broader transformation strategy, which targets annual revenue growth of 7% to 10% and operating margins of 10% to 12% by fiscal 2028.