KVH Industries (KVHI) has released an update.
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KVH Industries, Inc. is undergoing a significant restructuring as it moves away from in-house manufacturing due to decreased demand and rising competition. The Board has decided to shut down the manufacturing unit in Middletown, Rhode Island, and shift focus to sales of integrated communication solutions. This change will result in a workforce reduction of approximately 20%, with severance charges around $3.3 million. Concurrently, Anthony Pike is set to become the new CFO, replacing Roger A. Kuebel, to guide the company through this transition, and the COO, Robert Balog, will be leaving the company. These strategic moves come amidst financial adjustments, including an increased provision for excess inventory and a write-off of capitalized costs due to project discontinuation.
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