Onsemi Layoffs: 1,000 jobs cut globally amid EV slowdown

What’s happening at Onsemi?

On Thursday, Arizona-based computer chip maker Onsemi announced it will cut its global workforce by approximately 1,000 employees.

The company will consolidate nine sites and reassign an additional 300 employees or request they relocate to different sites. The workforce reduction is part of a broader effort to streamline operations and reduce costs amid sluggish demand for chips, particularly in the electric vehicle (EV) sector.

Context of layoffs

• Onsemi cited a weak EV market and excess inventory at customer sites as key factors contributing to the workforce reduction, according to Reuters.
• The company plans to incur between $65 million and $80 million in employment-related charges over 2024 and 2025, with the process expected to complete by 2025.
• The layoffs follow a similar move in 2023, where Onsemi laid off about 1,900 employees to bolster its internal manufacturing of high-margin chips and reduce outsourcing costs

Industry issues

Onsemi’s announcement comes as the chip industry continues to navigate challenges in the EV market and broader economic uncertainties.

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