This US-based auto chipmaker cuts 2,000 jobs as demand slows down

Microchip Technology has announced it will cut around 2,000 jobs, or about 9% of its workforce, in response to slowing demand. According to a report by Reuters, the chipmaker’s headcount reductions will primarily affect its factories in Oregon and Colorado in the US. Layoffs will also occur at the Arizona-based company’s backend facility in the Philippines, the report noted.

As per the report, Microchip is also planning to close its Arizona factory to address the decreased demand and reduce excess inventory. With this move, the company expects to cut overall inventory by over $300 million by March 2026.