On February 25, Onsemi announced the launch of a restructuring plan aimed at reducing operational costs, which will involve laying off approximately 2,400 employees globally across all business divisions by 2025, as reported in a filing on Tuesday.
The plan was set in motion on Monday, expecting charges of $50 million to $60 million related to the job cuts, mostly anticipated to be reflected within the current year.
The chipmaker stated that the layoffs are projected to yield annualized savings ranging from $105 million to $115 million. As of December 31, Onsemi employed nearly 26,400 full-time employees and around 90 part-time and temporary staff across facilities in 33 countries.
Earlier this month, the company fell short of Wall Street expectations for first-quarter revenue, attributed to reduced demand for its automotive chips as customers scaled back orders amid economic uncertainties. Its fourth-quarter revenue, ending December 31, reached $1.72 billion, failing to meet estimates of $1.76 billion.