Wednesday, January 7, 2009
ON Semiconductor Lops 10 Percent More In Drastic Cost Cuts
Phoenix, Arizona-based ON Semiconductor, which develops analog and power semiconductors, said Wednesday afternoon that it is cutting 10 percent of its employees, or approximately 1500 people, along with other drastic cost cutting measures. The firm said that the new measures--on top of an earlier cost reduction effort--include an acceleration of factory shutdowns to the middle of 2009 from an earlier planned end of 2009 shutdown date; closing of an additional factory by the end of 2009; 4 to 6 week shutdowns at its factories in both Q1 and Q2; three weeks of force unpaid time off for senior executives, in both Q1 and Q2; two weeks of unpaid time off or a 4 day work week for other employees; plus no merit increases or bonuses in 2009. The firm said the move is expected to save the firm $40 to $50M a quarter.