OnSemi’s restructuring plan to cut 2,400 jobs
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As expected power and sensing chip company On Semiconductor Corp. has initiated a restructuring plan. It has stated in an SEC filing that it intends to cut about 2,400 jobs or about 9 percent of the workforce in 2025.
Earlier in the month the company talked of “streamlining its business” as it announced financial results for 4Q24 and the full year, and said further details would follow. For the full year 2024 OnSemi’s revenue fell to US$7.08 billion, a drop of 14.2 percent from US$8.25 billion revenue in 2023. The net income fell from US$2.18 billion in 2023 to US$1.57 billion in 2024.
OnSemi has now filed with the SEC that it has begun a company-wide restructuring that will impact all business groups including the worldwide manufacturing organization.
The cuts are expected to cost OnSemi between US$50 million and US$60 million in charges but once completed are expected to generate savings of US$105 million to US$115 million on an annualized basis.
OnSemi is one of a number of chip companies exposed to automotive and industrial sectors that have seen sales contracting and weak outlook for the 1Q25. NXP Semiconductor and STMicroelectronics are both reportedly implementing cost-saving plans, including significant job cuts.
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