ON Semiconductor announces layoffs
POCATELLO — Officials with ON Semiconductor Corp. announced Monday they’ve laid off several local staff members who served in a variety of capacities for the company.
ON spokeswoman Beth Johnston said fewer than 40 employees were laid off but did not offer a more specific number.
Johnston said the reduction in force is one of many steps ON is implementing to cut costs. She provided the Journal with a company statement attributing the layoffs to an anticipated reduction in demand.
“As reported in our fourth-quarter earnings, softened macroeconomic conditions will have an impact on the company’s near-term growth outlook,” the statement reads.
“This slowdown in the market required us to manage the business prudently and adjust our operational spend. The company is taking measures across the organization to control expenses including a reduction in workforce to align with current business demand.”
The company (Nasdaq: ON) announced its total revenue for the fourth quarter of 2018 was $1.503 billion, which was up 9 percent compared with the same quarter from the prior year. However, earnings were down 3 percent compared to the third quarter of 2018.
In a press release about fourth-quarter earnings, ON President and CEO Keith Jackson said automotive, industrial and cloud-power markets are still healthy, and the company remains upbeat about its long-term outlook.
“We once again delivered strong performance in the fourth quarter despite slowdown in macroeconomic conditions,” Jackson said in the press release. “Despite confidence in our medium- to long-term outlook, we remain cognizant of slowing macroeconomic conditions, and we are managing our business prudently to adjust to changing demand environment.”
The company anticipates its total revenue in the first quarter of 2019 will drop to between $1.365 billion and $1.415 billion, based on factors such as “product booking trends and backlog levels.”
The Fortune 500 semiconductor supplier is based in Phoenix and operates a large plant in Pocatello, which was formerly AMI Semiconductor.