Orbotech, an Israeli subsidiary of American semiconductor equipment giant KLA Corporation, is laying off over 100 employees. This follows the strategic closure of its flat panel display (FPD) division, one of its two main business units. The layoffs, announced in March 2024, are a direct result of a severe and continuous market decline. The FPD and printed circuit board testing division saw revenues plummet by 48% in 2023, contributing to only about 3% of KLA's total revenue, as weak consumer electronics demand led to reduced investment from customers, primarily in the Far East. The decision was accelerated by the cancellation of a major project with a key client.
