Archive to Lay Off 200 and Transfer Jobs to Singapore

Archive Corp. said last week it will lay off nearly 200 factory workers at its Costa Mesa electronics assembly plant in March and April as it transfers work to lower-paid employees at its Singapore plant.

The company cited the economies of the Singapore facility as a major reason for record earnings of $1 million in its recently concluded first quarter.

D. Howard Lewis, chairman and chief executive, said the layoff, affecting about 40% of Archive’s total Costa Mesa work force, will be the largest in the company’s history. Following the layoff and work transfer, about 80% of Archive’s manufacturing will be handled at the 2-year-old Singapore facility.

Lewis said the shift to offshore production, a popular move by cost-conscious electronics companies throughout the country, was necessary for Archive to remain competitive. When the layoffs are completed in April, Lewis said, about 300 workers will remain in Costa Mesa.

In the quarter ended Dec. 27, the company reported a profit of $1 million, nearly 20 times higher than the $55,000 reported the year before. Revenue was $20.7 million, up 86% from $11.1 million the prior year.

Lewis said the performance was also due to the redesigning of Archive’s popular Scorpion computer tape drive to allow high-volume manufacturing.