Cigna earnings beat by $0.04, revenue topped estimates
Investing.com -- Microchip Technology (NASDAQ:MCHP) announced on Monday that it plans to eliminate approximately 2,000 jobs, which equates to about 9% of its total workforce.
The decision comes as the chipmaker restructures its operations in response to a decrease in demand from the automotive industry.
The company anticipates incurring costs between $30 million and $40 million due to the layoffs. These costs will consist of cash severance and other related restructuring expenses.
The company will communicate the layoffs to its employees within this month and plans to fully implement them by the end of the June quarter.
In addition to the job cuts, Microchip Technology will also cease operations at its Arizona chip manufacturing facilities in May.
This move comes several months earlier than initially anticipated when the company announced the planned closures in December.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.