The Livermore, Calif.,-based firm plans to shutter its Baldwin Park facility and lower 113 jobs there on Jan. 30, in keeping with a layoff discover despatched to the California Employment Improvement Division this week. Its facility in Carlsbad is scheduled to shut in mid-December later this yr, which is able to end in 107 job losses, in keeping with an earlier discover.
Technicians, engineers, managers, assemblers and different employees are amongst these anticipated to lose their jobs, in keeping with the notices.
The corporate provides semiconductor testing tools, together with probe playing cards, and different merchandise. The business has been benefiting from elevated AI chip adoption and infrastructure spending.
FormFactor is among the many employers which were shedding employees amid extra financial uncertainty.
Corporations have cited numerous causes for workforce reductions, together with restructuring, closures, tariffs, market situations and synthetic intelligence, which might help automate repetitive duties or generate textual content, photographs and code.
The tech business — a key a part of California’s economic system — has been hit exhausting by job losses after the pandemic, which spurred extra hiring, and amid the rise of AI instruments which are reshaping its workforce.
As tech firms and startups compete fiercely to dominate the AI race, they’ve additionally lower center administration and different employees as they transfer quicker to launch extra AI-powered merchandise. They’re additionally investing billions of {dollars} into information facilities that home computing tools used to course of the large troves of knowledge wanted to coach and preserve AI methods.
Corporations corresponding to chipmaker Nvidia and ChatGPT maker OpenAI have benefited from the AI growth, whereas legacy tech firms corresponding to Intel are preventing to maintain up.
FormFactor’s cuts are a part of restructuring plans that “are supposed to higher align value construction and assist gross margin enchancment to the Firm’s goal monetary mannequin,” the corporate stated in a submitting to the U.S. Securities and Change Fee this week.
The corporate plans to consolidate its services in Baldwin Park and Carlsbad, the submitting stated.
FormFactor didn’t reply to a request for remark.
FormFactor has been impacted by tariffs and seen its progress sluggish. The corporate employs greater than 2,000 folks and has been aiming to enhance its revenue margins.
In October, the corporate reported $202.7 million in third-quarter income, down 2.5% from the third quarter of fiscal 2024. The corporate’s internet earnings was $15.7 million within the third quarter of 2025, down from $18.7 million in the identical quarter of the earlier yr.
FormFactor’s inventory has been up 16% since January, surpassing greater than $67 per share on Friday.
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