By Adriano Marchese
Microchip Technology is reducing its workforce across manufacturing and corporate operations by about 2,000 as the embattled chip maker looks to cut costs amid declining sales.
The Arizona-based semiconductor company said Monday that the cuts will be at its Fab 4 facility in Gresham, Oregon and its Fab 5 facility in Colorado Springs, Colorado as well as at a facility in the Philippines.
On the corporate side, Microchip said it will slash jobs in various business units and support groups.
It expects to incur about $30 million to $40 million in severance and benefits costs.
The company had already been readjusting its structure. In December, Microchip said it would close its Fab 2 facility in Tempe, Arizona. It expects to shut down those manufacturing operations in May and the facility and equipment will be sold.
Microchip expects the latest cuts to save the company about $90 million to $100 million every year once fully implemented.
In its most recent quarter, the company reported net sales of $1.03 billion, down nearly 12% sequentially and down 42% from the prior-year period.
The company also swung to a third-quarter loss of $53.6 million from a profit of $419.2 million a year earlier.
At the time, Chief Executive Steve Sanghi said the company required decisive steps to realign the business in the face of declining revenue and a growing inventory backlog.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 03, 2025 07:50 ET (12:50 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.