SCI Systems Plans Cuts

SCI Systems Inc., an electronics contract manufacturer, said it plans to cut about 3,800 jobs, or 10% of its staff, and close an unspecified number of plants because of weak sales growth. The company, which makes personal computers and base stations for cell phones for other companies, said the cutbacks will result in a charge of $40 million to $60 million. SCI Systems has been reducing its dependence on PCs, which have accounted for about 32% of sales, and is focusing on making telecommunications equipment. Last month, the company said fiscal third- and fourth-quarter profit and sales would miss estimates because of weakening sales of PCs and TV set-top boxes. The job cuts will be made through attrition, layoffs and firings. Details on the plant closings will be announced within two weeks. Shares of Huntsville, Ala.-based SCI Systems fell 88 cents to close at $22.95 on the NYSE.