Onsemi said it will cut almost 1,000 jobs globally to streamline operations and reduce costs.
The chipmaker faces a sluggish recovery in chip demand, impacted by a weak electric vehicles market and excess inventory among its customers.
In a regulatory filing, Onsemi also disclosed plans to consolidate nine sites and reassign an additional 300 employees or ask them to relocate to other sites.
According to its latest annual report, the company employed around 30,000 full-time staff as of December 31, 2023.
It supplies chips used in the drivetrains of electric vehicles and in driver-assistance systems such as cameras and sensors.
Its silicon carbide chips are also instrumental in extending the range of electric vehicles.
The company expects to incur between $65 million and $80 million in employment-related charges between 2024 and 2025, and the restructuring process will be completed by 2025.
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Onsemi plans to reinvest some of the savings from these cuts into new business initiatives and opportunities.
Last year, Onsemi laid off about 1,900 employees to manufacture more profitable chips internally while outsourcing other production to save costs.
In April, the company forecast its second-quarter revenue and profit below analysts’ expectations.
Shares of Onsemi were down slightly in extended trading and have fallen 8.8 percent year-to-date.
