ON Semi Lays-off 740 Employees

PhoenixBusinessJournal: ON Semiconductor plans to lay off approximately 740 employees across the company and its subsidiaries during the first half of 2021. The company said these terminations are part of its ongoing efforts to refocus on growth drivers and streamline operations.

Here is an official company's SEC disclosure:

"On March 4, 2021, as part of its ongoing efforts to realign its investments to focus on growth drivers and key markets and streamline its operations, ON Semiconductor Corporation (the “Company”) plans to implement certain employee terminations during the first half of 2021 (the “Employment Separations”). The Employment Separations will impact approximately 740 of the Company’s and its subsidiaries’ employees globally. The Company estimates that it will incur between $58 million and $62 million in aggregate costs during the first half of 2021.

The Company plans to reinvest a substantial portion of the savings generated from the Employment Separations into its continuing workforce and certain business initiatives and opportunities. Consequently, the restructuring may not result in a material reduction in the Company’s future operating expenses. The Company intends to continue to evaluate measures to realign its investments to achieve the Company’s strategic and transformational goals."

In December 2020, an activist investor group, NY-based Starboard Value LP, placed two of its preferred directors on the board in an effort to enhance shareholder value.