Microchip Technology Layoffs: US-Based Semiconductor Company To Lay Off 2,000 Employees, Shut Down Manufacturing Facility Amid Slow Demand From Automotive Industry
Chandler, March 4: Microchip Technology, a US-based chipmaker, will reportedly start laying off thousands of employees as part of its restructuring exercise. The company reportedly shared its plans to let go of 2,000 employees amid weakening demand. Microchip layoffs are a response to the semiconductor company’s ongoing struggles with the automotive sector.
According to the reports, the latest job cuts will cost the company between USD 30 and 40 million, which includes severance pay and expenses related to the restructuring. The Microchip Technology layoffs will affect 9% of the chipmaker’s workforce. The semiconductor company, based in Chandler, Arizona, has reportedly been struggling with poor demand from its automotive customers. Tech Layoffs 2025: 74 Companies Lay Off 18,397 Employees This Year Amid Various Reasons, Meta and HP Lead.
The automotive industry has also been struggling amid the competition from electric vehicles and Chinese rivals and slow demand in the international market. Due to these factors, the Microchip share price fell to 36% in 2024. To tackle the situation, the Microchip Technology sees the layoffs as the best option. The workforce reduction will be implemented at the company’s fabrication units located in Gresham, Oregon, and Colorado Springs, Colorado.
Microchip layoffs will also be implemented in the company’s manufacturing facility in the Philippines. The company’s employees will be informed about the job cuts this month. However, the chipmaker will complete the headcount reduction process by the end of June 2025.
Besides the layoffs, Microchip will also shut down its manufacturing facility located in Arizona. The company had already filed for the closure of the company in December, targeting USD 90 million in cash savings. The Microchip factory layoffs will affect more people and reportedly cost the company another USD 25 million. Ola Electric Layoffs: Bhavish Aggarwal’s EV Firm To Cut 1,000 Jobs as Part of Restructuring Amid Losses, Say Reports.
Further, the semiconductor will incur a USD 45 loss related to cancelling or modifying the long-term supply agreements with wafer industries. The Microchip layoffs will affect various business units and support groups.
(The above story first appeared on LatestLY on Mar 04, 2025 09:55 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
