- The layoffs are expected to result in annual cost savings between $65 million and $70 million
- The company employs nearly 35,000 people globally
On Semiconductor said that it will lay off 475 employees across its global footprint to cut costs as it deals with the COVID-19 pandemic. The company employs nearly 35,000 people globally. As per reports, it said that the targeted cost reductions are structural in nature and are not expected to impact the company’s ability to respond to a significant recovery in demand.
As per a report by Marketwatch, the severance costs are expected to be $43 million to $47 million over the first and second quarters. It also said that the reductions saving will be about $65 million to $70 million a year.
Reduce annual cost savings of approximately $90 million
As per Phoenix Business Journal, this moves come a month after company CEO Keith Jackson had warned investors in a filing that the company was in the process of implementing restructuring measures that are expected to reduce annual cost savings of approximately $90 million. He added that the majority of it is expected to be in operating expenses. The report added that the company said that it is continuing to evaluate and implement additional measures that will result in further cost savings
