ON Semiconductor to cut 250 jobs
(Reuters) - Power-management chipmaker ON Semiconductor Corp said it will cut about 250 jobs and cancel its annual cash incentive program for senior executives to reduce costs in a weak macroeconomic environment.
The company expects to complete most of the job cuts in the current quarter and estimated a related charge of $11 million to $14 million, it said in a filing on Wednesday.
ON Semiconductor had a global workforce of 19,442 last year, of which 2,411 employees were in the U.S., according to the company's annual report.
Rival Intersil Corp said in May that it would reduce its workforce by 11 percent to cut costs and revamp its product portfolio.
A weak spending environment has forced chipmakers into a rough patch, with many including Fairchild Semiconductor International Inc and Cypress Semiconductor Corp forecasting weak growth on falling orders and lower consumer spending.
ON Semiconductor, which makes radio-frequency custom chips for consumer, automotive and industrial markets cut 10 percent jobs in one of its core segments in the last quarter.
It counts Flextronics Corp, Samsung Electronics Co Ltd, Sony Corp and Panasonic Corp among its customers.
The company had earlier this month reported second-quarter revenue below expectations as orders fell. It also said its Chief Financial Officer Donald Colvin had resigned.
The chipmaker has been streamlining its operations since last year, when it said it would close its wafer manufacturing facility in Aizu, Japan.
The company, whose revenue has declined over the last four quarters, said the cost-cutting measures are being undertaken to bring its spending in line with revenue projections.
ON Semiconductor, whose shares have fallen 14 percent since the beginning of the year, forecast third-quarter revenue of between $725 million and $765 million.
The Phoenix, Arizona-based company's shares closed at $6.63 on the Nasdaq on Tuesday.
(Reporting by Neha Alawadhi in Bangalore; Editing by Joyjeet Das)