Onsemi Layoffs 2024: What to Know as Onsemi Cuts 1,000 Jobs

Onsemi (NASDAQ:ON) layoffs are a hot topic on Friday as the semiconductor company has announced plans to cut 1,000 jobs.

A statement from Onsemi notes that these cuts will be global as it looks to reduce costs and streamline operations. This also has it closing down several sites, including its South Portland location, while asking around 300 employees to relocate.

The reason for these changes is the slowing demand for electric vehicles (EVs). The company’s chips are used in EV drive trains to assist drivers. Its customers already have a strong supply of chips, lessening the need to order more from Onsemi.

The company also notes that these layoffs will result in it suffering $65 million charges in 2024 and $80 million charges in 2025, reports Reuters.

Onsemi Joins Layoffs Trend

Onsemi is only the latest in a growing number of companies that have been cutting jobs. Continued factors weighing on businesses include increased inflation and heightened interest rates.

Investors have been hoping for cuts to interest rates from the Federal Reserve. However, inflation has cooled enough for the regulator to consider any rate cuts right now.

ON stock is down 4.3% as of Friday morning and is down 11.9% year-to-date.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.