Is Onsemi Laying Off Employees: Outlook And Future Prospects

Is Onsemi Laying Off Employees? In 2022, Onsemi, a semiconductor manufacturer, laid off around 88 employees. Not only this, but Onsemi also decided to close its Bay Area facility permanently.

This decision follows a thorough review of their business. They aligned the workforce with their strategic goals. It is believed that affected employees had received severance packages and other entitled benefits.

DiscontinuedNews is impartial and independent, and every day, we create distinctive, world-class programs, news, and content that inform, educate and entertain millions of people worldwide.

About Onsemi

Onsemi (Nasdaq: ON) is at the forefront of innovation. The company drives positive change for a brighter future. It focuses on the automotive and industrial sectors. Onsemi is a catalyst in transformative megatrends such as:

  • Vehicle electrification
  • Safety enhancements
  • Sustainable energy grids
  • Industrial automation
  • The advancement of 5G
  • Cloud infrastructure

Onsemi boasts an exceptional product portfolio. It offers cutting-edge power and sensing technologies. These help to tackle the world’s most intricate challenges. Their mission is to pave the way for a safer, cleaner, and brighter world. Onsemi is recognized as a Fortune 500 member. It also featured in the Nasdaq-100 Index and S&P 500 index. Undoubtedly, Onsemi is shaping the future. 

ON Semiconductor specializes in designing and manufacturing semiconductor products, including:

  • Chips
  • Sensors
  • Power management devices
  • Other electronic components across 20 sites

It is primarily in the Asia-Pacific region. Their South Portland operations were acquired in 2016. At that time, they purchased Fairchild Semiconductor International Inc. for $2.4 billion.

The facility, located at 333 Western Ave., covers 345,000 square feet. It produces a variety of integrated circuit products. Some industry analysts had previously speculated about its future based on its age. Onsemi was established in 1962.

In short, Onsemi is a global leader in semiconductors. It is known for innovative solutions in the automotive, industrial, and communication sectors. Onsemi is firmly committed to its sustainability and corporate responsibility.

Notably, these layoffs had a significant impact on employees. Onsemi assured support for the affected employees. Besides, their families were also impacted by the move during this challenging period.

Onsemi Layoffs 2021

Onsemi also announced layoffs a couple of years ago in 2021. In that layoff round, the company cut around 740 jobs. It also included some positions at their South Portland manufacturing facility. However, the company described the impact on this location as “minor.”

“This workforce reduction was a company-wide effort. It was designed to make operations more efficient. Besides, the company wanted to redirect investments towards high-growth product lines,” according to Sarah Rockey. Sarah Rockey was an Onsemi spokesperson.

Regarding the South Portland site, Rockey didn’t provide an exact number of affected employees at that time. But Rockey assured that the cuts were minimal.

In its SEC filing, Onsemi noted that the layoffs would result in potential severance payments. Not only this, but it also resulted in termination costs of up to $62 million. The company also mentioned its ongoing evaluation of measures to realign investments.

ON Semiconductor reported $5.2 billion in revenue for 2020. A 4.8% decrease from the previous year. It indicated the pandemic impacted the global supply chain badly and reduced demand. It happened mainly in the automotive sector. It accounted for 32% of their revenue.

Onsemi’s stock price experienced changes. But in 2021, it was marked at $37.65. It showed resilience since its low point of $8.17 per share in March 2020. The company held a market capitalization of $16 billion.

ON Semiconductor is adapting to market challenges with a strategic workforce reduction. Not only this, but it also continued efforts to realign investments in response to changing demands.

Onsemi Layoffs 2020

ON Semiconductor also announced layoffs in 2020. Due to the Coronavirus pandemic, Onsemi faced financial issues and decided to make this move. They trimmed their workforce by laying off around 475 employees worldwide. 

It was believed that the move was part of a broader restructuring effort. It aimed at saving the company a significant chunk of money. The company planned to save around $90 million every year.

At the close of 2019, ON Semiconductor boasted a global workforce of 34,800 individuals. So, these layoffs represented about 1.4% of their total employees. The company expected that this reduction would lead to annual savings between $65 million and $70 million. But importantly, they assured us that it won’t hinder their ability to bounce back when demand rises.

In addition to these layoffs, ON Semiconductor was actively exploring other cost-saving measures as they navigated these challenging times. The company tried to make these moves.

How Many Employees Does Onsemi Have?

As of 2022, onsemi stands tall with a net income of a remarkable $1.90 billion. It showcases its financial prowess. The company’s total assets are substantial. It amounts to $11.98 billion. Its financial health underlines its robust presence in the semiconductor industry.

With a strong foundation, Onsemi maintains a total equity of $6.21 billion. What truly makes this company thrive? The specialty that makes this company thrive is its dedicated workforce. It is noted that there were around 31,000 employees as of December 2022. They drive the company’s innovation and success.

Is Onsemi Recruiting Employees?

Onsemi has made a significant announcement by relocating its headquarters. Onsemi relocated its headquarters from Phoenix to Scottsdale, Arizona. Their new office finds its home within the Salt River Pima Maricopa Indian Community. This move was about more than just changing addresses. But it was a green leap forward.

The company anticipated a remarkable 12.84 million kWh reduction in energy consumption. As compared to their 2021 usage, this eco-conscious decision is a substantial step. It goes toward Onsemi’s ambitious net-zero emissions goal by 2040. To put it into perspective, this energy saving equates to powering 1,057 homes for an entire year.

This shift not only reflects Onsemi’s commitment to sustainability. But also its dedication to hiring talented employees in the technology sector. To drive technological advancements for a sustainable future, they are hiring excellent and top-notch professionals.

Moreover, Onsemi is more than just settling into a new location. They’re expanding their team. Currently, there are 73 job openings at their Scottsdale-based headquarters. Besides, there is a further 530 positions available worldwide.

All in All, Onsemi’s move to Scottsdale showcases its dedication to sustainability, energy efficiency, and community involvement. It is not just changing the whole scenery. But it is the company’s commitment to its brighter and greener future ahead.

Is Onsemi A Good Company?

Based on feedback from over 1,456 anonymous employee reviews, Onsemi has generated an overall rating of 3.8 out of 5. Impressively, 72% of these employees would enthusiastically recommend the company to work as they found Onsemi as a workplace for their friends.

Moreover, 67% of them express a positive outlook for the company’s future. It highlights the general optimism and satisfaction among Onsemi’s workforce.

Onsemi Outlook And Future Prospects

Onsemi has just released its second-quarter 2023 results, and here’s what stands out:

The company achieved $2,094.4 million in revenue, maintaining consistency year-over-year. Impressively, both GAAP and non-GAAP gross margins reached 47.4 percent.

Operating margins, GAAP stood firm at 32.2 percent. While non-GAAP stood at 32.8 percent. It is noted that GAAP stood at $1.29. It appears that EPS is still constant. Along with non-GAAP at $1.33, nearly matching the previous year’s $1.34 per share.

Automotive revenue soared to a record-breaking $1 billion. It is marking a remarkable 35% year-over-year increase. Industrial revenue also showed growth, reaching $609.3 million. It is noted that there is a 5% increase from the previous year. The most notable achievement is in silicon carbide revenue. It surged almost fourfold compared to last year.

Hassane El-Khoury, President and CEO of Onsemi, expressed satisfaction with the results. He attributed the success to growth in the automotive and industrial sectors. He emphasized the company’s operational excellence. Besides, he noted the adaptability in navigating a challenging macroeconomic environment. Furthermore, Onsemi’s capacity expansion in silicon carbide positions them favorably to meet the rising demand for electrification and renewable energy solutions.

Who Are Onsemi Competitors?

I am looking for the top competitors of Onsemi. It is noted that there are 153 active competitors of Onsemi. 

Below, you can check the list of the best competitors of Onsemi. Let’s find them out:

  • Marvell

Location: Santa Clara

Founded: 1995

Status: Public Company

  • Infineon

Location: Neubiberg

Founded: 1999

Status: Public Company

  • Microchip

Location: Chandler

Founded: 1989

Status: Public Company

  • Analog Devices

Location: Wilmington

Founded: 1965

Status: Public Company

  • Semtech

Location: Camarillo

Founded: 1960

Status: Public Company

  • Cypress Semiconductor

Location: San Jose

Founded: 1982

Status: Acquired Company

  • Renesas Electronics

Location: Tokyo

Founded: 2002

Status: Public Company

  • Intel

Location: Santa Clara

Founded: 1968

Status: Public Company

  • AMS

Location: Unterpremstatten

Founded: 1981

Status: Public Company

  • OmniVision

Location: Santa Clara

Founded: 1995

Status: Acquired Company

The Verdict

Onsemi, a leading semiconductor manufacturer, announced layoffs in the past years. The company made a significant announcement about layoffs. This move affected the company and its subsidiaries.

These layoffs are part of Onsemi’s ongoing efforts. The company wanted to refocus on growth and streamline operations even though they’ve been growing through acquisitions and investing in employee education.

While Onsemi is good at shipping commodity parts, its custom chip design division keeps things interesting. The targets for these divisions are not in the control of the workers. Layoffs can happen based on the overall company’s performance, regardless of division successes.

All in All, Onsemi’s layoffs are part of their strategy to refocus and streamline their business despite their growth and investment in employee education. However, they’ve had periodic layoffs and frequent reorganizations. The challenge lies in division targets being beyond the control of the workers.