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Microchip Technology Announces Major Restructuring: 2,000 Jobs Cut Amid Slowing Demand

Reuters

Microchip Technology is undergoing a significant restructuring effort, resulting in the elimination of approximately 2,000 positions, which accounts for about 9% of its total workforce. This move is aimed at combating the declining demand from the automotive sector, a key market for the chipmaker. The company anticipates incurring costs ranging from $30 million to $40 million due to the layoffs, as it navigates the challenges of a rapidly changing industry landscape, including the impact of semiconductor industry trends and global chip shortages.