ON Semi reports losses, to cut jobs

SAN FRANCISCO, USA: In order to save between $10 million and $15 million every year, ON Semiconductor is in plans to cut additional jobs. Donald Colvin, ON Semi's chief financial officer, said the company planned to cut 10 per cent of non-manufacturing jobs in "high cost regions" and the company carried out a 10 per cent reduction in headcount at its Sanyo Semiconductor division during the second quarter. ON Semi acquired Sanyo in January 2011, reports Dylan McGrath of EETimes.

The second quarter revenue and the third quarter sales target did not meet consensus analysts’ expectations. ON semi has been failing to fructify its plans which the company had taken last year. Last year, it had announced to close three fabs in Japan and two back end test assembly facilities I Thailand. While the back end facilities never reopened due to Thai floods in 2011, the fab closures are taking place this year.

“The 10 per cent 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 Keith Jackson, CEO, ON Semiconductor.

"We've seen a lot of folks that have continued to push on being lean, and then they get in the jam and have to order stuff quickly," Jackson added.