Microchip Technology layoffs: Chipmaker to cut 2000 jobs and closes several plants

Microchip Technology has announced plans to reduce its workforce by approximately 2,000 roles, equating to about nine per cent of its global staff, as part of a strategic restructuring initiative. The move comes in response to weakening demand from the automotive sector, which has been struggling to clear existing semiconductor inventory.

The Chandler, Arizona-based chipmaker has faced significant challenges over the past year, with its stock value plummeting by more than 36 per cent due to sluggish demand from automotive customers. As a result, the company is taking decisive steps to streamline operations and curb expenses.