Westborough manufacturer lays off about 20% of workforce amid restructuring
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Kopin Corp.'s Westborough headquarters
Following the retirement of its founder and CEO and the resignation of one of its executive vice presidents, Westborough display manufacturer Kopin Corp. is restructuring, resulting in about 30 layoffs.
Kopin announced the restructuring on Jan. 5, which included the micro-display technology company entering into a business deal with Lightning Silicon Technology Inc., a California company formed by Kopin’s Chairman and former CEO John Fan, who retired on Dec. 24. Kopin CFO Richard Sneider told the Boston Business Journal 30 people were impacted by the changes. He said a vast majority of the workers have new positions with Lightning Silicon Technology, and the rest of the people are being laid off by Kopin. The company has about 150 employees today, according to BBJ.
Kopin CEO Michael Murray expects the company’s annual payroll expense, excluding severance and similar benefits, to decrease about 20% since Dec. 31, according to a Jan. 5 press release from the company.
“We have been performing program reviews with our customers, and in some cases slowing deliveries to ensure we are delivering the highest quality products. In addition, in select situations, we are negotiating potential exits from non-profitable endeavors, if they cannot be rectified,” Murray said in a Thursday press release updating stakeholders on the restructuring.
The same day Kopin put out that Jan. 5 press release, Boryeu Tsaur, the company’s executive vice president for display operations, resigned from his position with the company, according to filings with the U.S. Securities and Exchange Commission.
Kopin manufactures micro-displays for military, industrial and consumer products. The displays are used in fighter pilot helmets and firefighter masks.
Lightning Silicon Technology will license select Kopin intellectual property related to organic light emitting diode micro-displays, which are used for developing augmented reality and virtual reality. Lighting Silicon Technology will be able to develop, manufacture, and sell the OLEDs to the consumer market.
As part of the agreement, Kopin receives 20% equity interest in Lightning Silicon and will get royalties from the sale of products related to the licenses. Kopin will develop, manufacture, and sell OLED displays and complete optical solutions that include microdisplays to the defense and enterprise markets.
As a result of the restructuring, Kopin said it expects its fourth quarter revenue to be about $11 million and for its fiscal 2023 revenue to be lower, according to the Thursday press release.
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