This US-based semiconductor manufacturer to layoff 2,400 employees

Onsemi, a US-based semiconductor manufacturer, has announced a significant restructuring plan that will result in the layoff of approximately 2,400 employees across all business divisions worldwide. This move is part of the company's efforts to reduce operational costs and improve efficiency amid challenging market conditions.
The restructuring plan, initiated this week, is expected to incur charges between $50 million and $60 million, with most of these costs anticipated to be recorded within the current fiscal year. However, the job cuts are projected to generate annual savings ranging from $105 million to $115 million.
Onsemi, which employed nearly 26,400 full-time employees and around 90 part-time and temporary staff across facilities in 33 countries as of December 31, has been facing declining demand for its automotive chips. Earlier this month, the company forecasted first-quarter revenue below Wall Street expectations, citing economic uncertainty and reduced customer orders.
The company reported revenue of $1.72 billion for the fourth quarter ended December 31, missing analyst estimates of $1.76 billion. Onsemi's revenue for 2024 was $7.082 billion, down from $8.253 billion in 2023, with net income of $1.572 billion compared to $2.183 billion in the previous year.
As Onsemi navigates these challenging times, the restructuring plan aims to position the company for long-term success by streamlining operations and focusing on core business areas. The extent to which these layoffs will affect Onsemi's design center in Bangalore remains uncertain.