Microchip Technology layoffs to cut 2,000 jobs!

Microchip Technology Inc., a prominent semiconductor manufacturer, has announced substantial workforce reductions in response to a significant decline in sales. According to WSJ, the company plans to lay off approximately 2,000 employees across its manufacturing and corporate operations.

This decision comes amid a challenging economic environment, with the company experiencing a 45% drop in sales, totaling $3.4 billion, and a 91% decline in profits. 

In addition to the layoffs, Microchip Technology has implemented intermittent furloughs for remaining workers as a cost-saving measure.

The company had previously announced the closure of its Tempe, Arizona, wafer fabrication facility by September 2025, affecting approximately 500 employees.

• According to Manufacturing Dive, this closure is expected to save around $90 million and is part of the company's strategy to optimize operations amid high inventory levels and available capacity at other facilities. 

These measures reflect the broader challenges faced by the semiconductor industry, as companies navigate economic headwinds and fluctuating demand.

Microchip Technology's actions aim to align its operations with current market conditions and ensure long-term sustainability.