onsemi to cut 2,400 jobs in global restructuring
On February 24, 2025, onsemi initiated a major global restructuring plan that will impact all business units, including its worldwide manufacturing operations.
The move is aimed at cutting costs and improving financial efficiency, aligning the company’s spending with market conditions – while maintaining progress toward its long-term growth strategy.
As part of the restructuring, onsemi plans to lay off approximately 2,400 employees globally. The company expects to complete the job cuts by the end of 2025, subject to local labour laws and regulations, the company disclosed in a SEC filing.
The restructuring is estimated to cost between USD 50 million and USD 60 million in severance, benefits, payroll taxes, and related expenses. The bulk of these charges will be recorded throughout 2025.
Despite the upfront costs, onsemi anticipates annual savings of USD 105 million to USD 115 million once the plan is completed. However, the company cautions that these estimates could change, and additional costs may arise due to unforeseen circumstances tied to the restructuring.
The layoffs and cost-cutting measures come as the semiconductor industry faces shifting demand, supply chain challenges, and economic uncertainties.
onsemi reported fourth-quarter 2024 revenue of USD 1.72 billion, down from USD 2.01 billion in Q4 2023, reflecting ongoing challenges in the semiconductor market.
For the full year 2024, onsemi’s total revenue declined to USD 7.08 billion, compared to USD 8.25 billion in 2023. Net income also dropped, with the company reporting USD 1.57 billion in 2024 versus USD 2.18 billion the previous year.
onsemi’s restructuring signals a broader trend of companies in the chip sector adjusting their workforce and operations to stay competitive in an evolving market.
onsemi's restructuring reflects a broader trend in the semiconductor industry, where companies are adjusting their operations to remain competitive amid evolving market conditions. For instance, both NXP and STMicroelectronics are reportedly reducing their workforces in response to market headwinds.
Additionally, several high-profile semiconductor fabrication projects have faced delays or cancellations.
These developments underscore the challenges semiconductor companies face in scaling operations and managing costs amid global economic uncertainties.
