ON Semi plans to cut more jobs

Published:2012/8/3 2:11:00 Author:Ecco From:SeekIC

According to the executives of ON Semiconductor Corp., the company plans to cut additional jobs as part of a plan to save the company between $10 million and $15 million per year. Donald Colvin, ON Semi’s chief financial officer, said the company planned to cut 10 percent of non-manufacturing jobs in "high cost regions" in a conference.

ON Semi said that it planed to close three fabs in Japan and two back-end test and assembly facilities in Thailand last year. The fab was closed this year, while the back-end facilities never reopened after being damaged during the Thai floods in 2011.

Keith Jackson, the CEO of ON Semi, said the 10 percent cut in the Sanyo division, combined with the new job cuts and various other measures put in place should help better position the company for prevailing weak economic conditions. "We do believe that these are the right type of actions to be taking in the likely economy over the next year," said Jackson.

Jackson also indicated that ON Semi has been hurt by sluggish sales as customer OEMs and distributors continue to maintain very lean levels of inventory. At the same time, Jackson said ON Semi is seeing an unusual number of urgent orders.

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