As part of a companywide restructuring program, Cushman Electronics in Newport Beach said it will close its production facility, located in San Jose, idling 30 of the company's remaining 66 workers. The factory is to be closed by the end of the month, the company said Wednesday.
In addition, the loss-ridden company will discontinue several unprofitable product lines that account for 50% of sales, said Vice Chairman Mark K. Howlett. The products include monitors and maintenance instruments for two-way radios.
Howlett said the scaled-down company will retain its profitable businesses, which include factory service, customer-funded research and distribution of cellular radio test sets, which will be manufactured by Mexican suppliers.
Deal to End Lease
Cushman has negotiated out of its five-year lease at the 40,000-square-foot manufacturing facility that it once owned. It sold the building in 1985 for $5.2 million to pay off debts. In 1985 the company employed more than 150 workers, mostly in San Jose.