Microchip Technology is set to reduce its workforce by approximately 2,000 employees. These job cuts will render about nine per cent of its total staff jobless.
The company is undergping a restructuring of operations to address weakening demand from the automotive sector.
The company anticipates incurring costs between $30 million and $40 million due to the layoffs. These expenses will cover cash severance packages and other restructuring-related costs. Employees affected by the job cuts will be informed this month, with the layoffs expected to be fully executed by the end of the June quarter.
In addition to workforce reductions, Microchip Technology is accelerating the shutdown of its chip- manufacturing facilities in Arizona. Initially planned for later in the year, the closure is now scheduled for May. This marks a significant shift in the company’s restructuring strategy as it navigates industry challenges.
Microchip Technology is an American semiconductor company that designs and manufactures microcontrollers, mixed-signal, analogue, and flash-IP integrated circuits. The company is known for its PIC and AVR microcontrollers, high-performance analogue products, and FPGA solutions, enabling developers to create innovative and efficient electronic designs. With a strong focus on reliability, scalability, and customer support, Microchip continues to be a key player in the global semiconductor industry.
