(Reuters) – Onsemi has initiated a restructuring plan aimed at reducing operational costs, which would result in the laying off of about 2,400 of its employees across all business divisions worldwide in 2025, the chipmaker said in a filing on Tuesday.
The plan was initiated on Monday and the company expects charges between $50 million and $60 million in relation to the job cuts, with most of these expected to be recorded within the current year.
The layoffs would likely generate savings ranging from $105 million to $115 million on an annualized basis, the chipmaker said.
Onsemi employed nearly 26,400 full-time employees and around 90 part-time and temporary staff across facilities located in 33 countries, as of December 31.
Earlier this month, the company forecast first-quarter revenue below Wall Street expectations, hit by softening demand for its automotive chips as customers cut back on orders due to prevailing economic uncertainty.
It reported revenue of $1.72 billion for the fourth quarter ended December 31, missing estimates of $1.76 billion.
(Reporting by Juby Babu in Mexico City; Editing by Mohammed Safi Shamsi)
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