Caesarstone Shuts Down Israeli Facility and Cuts 200 Jobs
The company approved additional steps under its strategic restructuring plan across its operations, commencing with the closure of the manufacturing facility in Bar-Lev, Israel, and a reduction in headcount of approximately 200 employees mostly associated with the facility. This strategic action is intended to increase competitiveness, improve the Company's profitability and cash flows, enhance service and drive additional cost efficiencies through an optimized manufacturing footprint. In connection with the facility closure, the company expects to incur non-cash impairment expenses of $40M to $45M and estimated cash costs in the amount of $4M to $8M related to operations, beginning in the fourth quarter of 2025 and continuing through the next 12 months. These estimated closure costs do not include a potential non-cash write-down on the long term non-cancellable facility lease agreement, valid through 2032, which the company aims to sublease in whole or in part through the remaining term of the lease. Once implemented, the company expects to realize annualized cash savings of approximately $22M, with the potential for additional cash savings if subleases are executed on the non-cancellable long-term facility lease agreement.
