More Than US$18 Million Cost-Cutting Plan: Daktronics to Close Ireland Factory

Daktronics, based in Brookings, South Dakota, has announced a restructuring of its global manufacturing operations that will close its factory in Ennistymon, County Clare, Ireland, consolidate production across the United States, Mexico and China, and reduce MicroLED development. invidis reported the company expects more than US$18 million in annualized pre-tax savings once the plan is fully implemented by mid-fiscal 2028, alongside approximately $15.8 million in one-time pre-tax charges. Daktronics expects the Ireland closure to be almost complete by mid-fiscal 2028.

Ireland Factory Closure and Job Losses

Daktronics plans to phase out manufacturing at the Ennistymon facility. The company estimates the closure will generate $7.7 million in annualized pre-tax savings, but it expects to incur $13.5 million in restructuring charges tied to the site. Those costs include employee severance, facility shutdown expenses, equipment transfers and potential asset impairments.

The decision will cost more than 100 jobs; the facility employed 116 people at the end of April 2025. Daktronics said it will work with existing customers to fulfill outstanding orders and maintain sufficient spare parts inventory for warranty and service obligations.

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. Efficiency gains at US factories through attrition and voluntary departures are expected to generate about $7 million in annualized savings.

President and CEO Ramesh Jayaraman said exiting Ireland and aligning capacity will help manage factory utilization, improve workforce productivity, set the stage for further automation and streamline procurement. Daktronics said 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, while North American intelligent transportation systems will continue to be served primarily from US facilities. The restructuring also cuts MicroLED development while retaining acquired intellectual property, with $3.1 million in annualized savings and about $1.2 million in severance and other costs, and exits customized international transportation projects representing about 1.5% of revenue, closing Hong Kong and Macau offices for an estimated $300,000 in annual savings.

Daktronics expects about $5 million in savings in the second half of fiscal 2027 and $16 million in fiscal 2028 before reaching its full annualized rate of $18 million. Acting CFO Howard Atkins said the benefits are expected to result primarily from a lower structural cost base, improved manufacturing utilization and productivity, and reduced organizational and operating complexity. The measures are part of a broader transformation strategy targeting annual revenue growth of 7% to 10% and operating margins of 10% to 12% by fiscal 2028.