Athira Sethu
Kochi, 26 February 2025
Onsemi, an international chip manufacturer, has revealed plans to downsize around 2,400 staff globally in 2025. This is part of a cost-cutting and efficiency drive.
The firm announced the plan on Tuesday, indicating that it began on Monday. Onsemi anticipates spending between $50 million and $60 million to implement these job reductions, with the majority of these expenditures being booked this year. But the firm expects that these redundancies will assist it in saving between $105 million and $115 million a year.
As of December 31, Onsemi had around 26,400 full-time employees and around 90 part-time and temporary workers spread over 33 nations. The layoffs will be for employees in various business units around the world.
Onsemi has also been struggling over the past few months. Previously this month, the company had forecasted its first-quarter revenue to be lower than anticipated. This is largely because of declining demand for its automotive chips. Customers are scaling down their orders due to uncertainty in the economy.
In the last quarter of last year, Onsemi posted revenue of $1.72 billion, which was less than the anticipated $1.76 billion. This reduction in revenue has contributed to the company’s move to reduce costs.
By downsizing its workforce, Onsemi is hoping to better manage its finances and set itself up for growth in the future. Although it is hard on employees, the company feels this move is crucial to staying competitive in the sector.
Onsemi still maintains its main business of producing chips for different sectors despite these issues. The company seeks to upgrade its operations and align with market trends.
The plan to restructure will assist Onsemi in remaining financially stable and ride out uncertain economic times.
