Daktronics to Close Ireland Factory in $18M Cost-Cutting Plan
2026-10-20 · via invidis
Daktronics is closing its manufacturing facility in Ennistymon, County Clare, Ireland, as part of a global restructuring the LED display maker says will generate more than $18 million in annualized pre-tax savings once fully implemented by mid-fiscal 2028. For buyers and integrators who specify Daktronics LED for stadiums, transportation and commercial signage, the move signals a consolidation of where that hardware actually gets built.
According to the company, the Ireland closure alone is expected to save $7.7 million a year, against $13.5 million in one-time restructuring charges covering severance, facility shutdown costs, equipment transfers and possible asset impairments. The Irish Times reports the closure will cost more than 100 jobs; Daktronics says the facility employed 116 people as of the end of April 2025. The company says it will continue to fulfill outstanding orders for existing customers and keep spare parts inventory available for warranty and service obligations, which matters for any operator with Daktronics screens already installed via the Irish plant.
Production will be redistributed across Daktronics' remaining manufacturing bases in the US, Mexico and China. The company says its Mexican facility has just completed its first production run, and it is expanding capacity in China with a move to a 355,000-square-foot leased facility built to support automated production. US plants will see efficiency gains through attrition and voluntary departures rather than layoffs, which Daktronics expects to add roughly $7 million in annual savings.
The restructuring also scales back Daktronics' MicroLED development, a technology it has been investing in as a longer-term alternative to conventional LED. The company says it will keep the intellectual property already acquired but expects the pullback to save $3.1 million annually against $1.2 million in severance and related costs. The announcement does not specify which MicroLED programs or products are affected, or whether any commercial MicroLED roadmap remains intact.
Separately, Daktronics is exiting highly customized international transportation projects, a segment it says represents about 1.5% of total revenue, and closing its Hong Kong and Macau offices, for an estimated $300,000 in annual savings.
Daktronics frames the changes as part of a broader transformation strategy targeting 7% to 10% annual revenue growth and operating margins of 10% to 12% by fiscal 2028. CEO Ramesh Jayaraman says the moves are meant to improve factory utilization, workforce productivity and automation readiness, while acting CFO Howard Atkins points to a lower structural cost base and reduced operating complexity as the main expected benefits. Full savings are expected to be phased in, with about $5 million realized in the second half of fiscal 2027 and $16 million in fiscal 2028 before reaching the full $18 million run rate.
The announcement in full
Reproduced from invidis for reference. Digital Signage Magazine did not write the text below.
The US display manufacturer will consolidate production across the US, Mexico and China, close its Irish manufacturing facility and scale back MicroLED development as part of a global restructuring.
Daktronics has announced a restructuring of its global manufacturing operations that will see the closure of its factory in Ireland, the consolidation of production across three countries and a reduction in MicroLED development activities.
The Brookings, South Dakota-based company expects the measures to generate more than US$18 million in annualized pre-tax savings once fully implemented by mid-fiscal 2028.
The restructuring will also result in approximately $15.8 million in one-time pre-tax charges, including $7 million during the second quarter of fiscal 2027.
Daktronics plans to phase out manufacturing operations at its Ennistymon, County Clare, facility, with the closure expected to be almost complete by mid-fiscal 2028.
According to The Irish Times , the decision will result in the loss of more than 100 jobs. The facility employed 116 people at the end of April 2025.
Daktronics estimates that closing the factory will generate $7.7 million in annualized pre-tax savings, although the company expects to incur $13.5 million in restructuring charges associated with the closure.
The costs include employee severance, facility shutdown expenses, equipment transfers and potential asset impairments.
The company says it will work with existing customers to fulfill outstanding orders and maintain sufficient spare parts inventory to meet warranty and service obligations.
Daktronics will redistribute manufacturing capacity across its operations in the US, Mexico and China.
Its new Mexican facility recently completed its first production run, while the company is expanding manufacturing capacity in China through a move to a 355,000-square-foot (approximately 33,000-square-meter) leased facility designed to accommodate automated production.
The company also plans to improve efficiency at its US factories through employee attrition and voluntary departures.
These changes are expected to generate approximately $7 million in annualized savings.
President and CEO Ramesh Jayaraman stated, “Exiting Ireland and aligning our manufacturing capacity will help us manage factory utilization across the network more effectively, improve work force productivity, set the stage for further automation, and streamline procurement initiatives.”
Daktronics says its live events, high school, parks and recreation, international and commercial business units will receive products from all three manufacturing countries, depending on customer requirements and delivery schedules.
North American intelligent transportation systems will continue to be served primarily from US facilities.
The restructuring also includes a reduction in MicroLED development activities, although Daktronics will retain the intellectual property it has acquired.
The company expects the move to generate $3.1 million in annualized pre-tax savings, with approximately $1.2 million in associated severance and other costs.
Daktronics will also withdraw from highly customized international transportation projects, a business representing approximately 1.5% of its total revenue.
As part of that change, the company will close its Hong Kong and Macau offices, generating an estimated $300,000 in annual savings.
Daktronics expects to realize approximately $5 million in savings during the second half of fiscal 2027 and $16 million during fiscal 2028, before reaching its full annualized savings rate of $18 million.
“The anticipated benefits of the initiatives announced today are expected to result primarily from a lower structural cost base, improved manufacturing utilization and productivity, and reduced organizational and operating complexity,” says acting CFO Howard Atkins.
The measures form part of Daktronics’ broader transformation strategy, which targets annual revenue growth of 7% to 10% and operating margins of 10% to 12% by fiscal 2028.