Digi International To Outsource Manufacturing Operations, Cut 60 Jobs

(RTTNews) - Digi International Inc. (DGII), a global provider of Internet of Things or IoT connectivity products and services, said it will transfer the manufacturing functions of its Eden Prairie operations facility to existing contract manufacture suppliers.

The company added that as a result of the shift in manufacturing operations, about 60 positions in the Eden Prairie facility will be eliminated in a staged fashion over the next 120 days.

Wherever possible, Digi will seek to find new positions within the company for the affected employees. Digi currently employs about 600 people globally.

Digi noted that the move to outsource falls in line with industry practices. The current facility will continue to house the operations team, which will support contract manufacturers as well as oversee the planning and procurement of finished goods and product fulfillment, logistics and quality.

According to Digi, the move will further leverage the manufacturing strength of its vendors and further focus the company on new product introduction.

"Digi manufacturers approximately 85 percent of its products through contract manufacturers. Moving the remaining portion to existing providers minimizes disruption," said Ron Konezny, president and CEO of Digi International.