Electric component maker Kemet (KEM) - Get Report plans to reduce its workforce at its Monterey, Mexico, facilities by about 400 employees.

Kemet said the move will be accomplished through a combination of normal attrition, release of temporary employees and layoffs of 120 people. The cost associated with the layoffs will be about $800,000, with a savings of over $4 million a year.

"These plants will remain at full production. This action is not a result of a loss of market share, but represents an element of our ongoing strategy to reduce cost and improve our competitive position in the world electronics market," said CEO Per Loof, in a press release. "Actions such as these are never easy or taken lightly. However, only by reducing cost and improving efficiencies will we be able to continue to compete successfully in the global market."

Shares of Kemet closed Monday down 4 cents to $8.23.