Onsemi has announced a restructuring plan to cut operational costs, resulting in the layoff of approximately 2,400 employees across all business divisions worldwide in 2025.
The chipmaker anticipates charges between $50 million and $60 million related to these job cuts, with most of the costs expected to be recorded within the current year. The layoffs are projected to generate annual savings of $105 million to $115 million.
Onsemi employed nearly 26,400 full-time employees and about 90 part-time and temporary staff across its facilities in 33 countries as of December 31.
The job cuts follow Onsemi’s recent forecast of first-quarter revenue of $1.35 billion to $1.45 billion with operating margin of 38.9-40.9 percent.
Onsemi is expecting a decline in sale due to weakening demand for automotive chips.
Onsemi reported revenue of $1.72 billion for the fourth-quarter ended December 31 against $2.018 billion in Q4 2023. Onsemi’s revenue for 2024 was $7.082 billion vs $8.253 billion in 2023 with net income of $1.572 billion vs $2.183 billion.
TelecomLead.com News Desk