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.

Your next step

If you have been affected by the layoffs at Onsemi, continue reading to find out what your rights are, and why you need to contact the employment lawyers at Samfiru Tumarkin LLP.

SEE ALSO
• Tesla layoffs affect software and engineering teams
• IBM layoffs hit long-serving employees in April: reports
• Rivian Layoffs: 10% of staff cut following $2.7B loss

Termination agreements for Onsemi employees

In Canada, non-unionized employees at Onsemi are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts at Onsemi come amid a flurry of layoffs in 2024.

Big names, including Vancity, Stifel, WillScot of Canada, Netflix, McKinsey & Co, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, Telus, Canada Goose, Dell, Unilever, IBM, and TC Energy, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.