Onsemi to cut global workforce by 1,000
Multiple reports say the US chip maker is taking action to streamline its operations in response to a slowdown in demand for EVs.
Onsemi supplies chips for industrial applications and is especially strong in automative. Its chips power the drive trains of electric cars and help with driver-assistance systems like cameras and sensors.
However, weakening demand – and excess inventory – for EVs has forced Onsemi to consolidate. The company, which had approximately 30,000 full-time employees as of December 2023, is now looking to cut jobs at nine sites according to regulatory filings.
The layoffs and site consolidations are expected to result in employment-related charges ranging from USD 65 million to USD 80 million by 2025. Around 300 additional employees will be reassigned or asked to relocate to other onsemi sites during 2025, subject to applicable local law and regulations.
It's believed that Onsemi will re-focus on manufacturing more profitable chips and business lines as part of its previously-announced “Fab Right” strategy to optimise its manufacturing network