TapTechNews on June 14th, the important company in the automotive semiconductor field, ON Semiconductor, filed a document with the US SEC yesterday and announced plans to lay off about 1,000 people and merge 9 factories, and another 300 employees will be required to adjust their positions.
As of December 31, 2023, ON Semiconductor has approximately 30,000 full-time employees.
The move by ON Semiconductor is aimed at reducing operating costs, advancing its FabRight strategy, optimizing its own manufacturing network, and consolidating the overall effort of its global corporate footprint.
The business adjustment of ON Semiconductor is expected to be completed by 2025, and it is expected to generate relevant personnel expenses of 65 million to 80 million US dollars (TapTechNews note: currently about 472 million to 581 million RMB) in this year and next year.
ON Semiconductor stated that most of the funds saved from this action will be reinvested in the construction of the employee team and business plans. Overall, it will not cause a substantial reduction in the company's future operating expenses.
ON Semiconductor achieved 1.8627 billion US dollars (currently about 13.519 billion RMB) in revenue in the first quarter of 2024, declining by 7.7% and 4.9% respectively quarter-on-quarter and year-on-year.
Currently, the automotive semiconductor market is still affected by excessive customer inventory and weak downstream demand. TSMC also estimates that the automotive field will become one of the worst subdivided industries in the overall chip industry this year.