Monday, March 08, 2021

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.

14 comments:

  1. Is there any more info on which business units are affected? And which locations? ON is a mammoth busy with a wild variety of segments.

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  2. All BUs and supported departments are affected. The whole design team in Mechelen was removed (industrial CIS of ISG), last year they did the same with design team in Santa Clara for consumer CIS, seems they want to get rid off ICSD, an ex-On employee CIS in Europe.

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    1. Sounds untrue.

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    2. What sounds untrue? That 740 staff are planned to be fired? That the 16 image sensor designers from the Mechelen site are fired, as well as their team leaders? That the Santa Clara team was let go last year? All are very true. This does not look like an expansion of the efforts towards CIS in industrial.

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    3. Legacy of ON in image sensing is build with acquisition (FAK).This layout-off is F-off.

      It sounded "untrue" as why should a company acquire an asset make profits and,eventually "let-go" to keep harvesting product families (IP, ISD Business) with them. Capitalism demonstrated here.

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  3. Still some OnSemi teams at Mechelen? Development ones?
    ICSD ?

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  4. What does it mean? On Semi will stop develop industrial CIS at all?

    Sounds incredible. On Semi have a huge part of the market...

    By wiki On Semi have 36000 employes(2018), 740 - is 2% percent only.

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    1. A huge part of the market? Industrial has rather long cycle time but to me it seems many of the onsemi industrial cis products are rather at the end of their lifecycle, not? Which onsemi industrial cis would you design in today?

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    2. There is a industrial cis company in antwerp, about 20km away that is hiring quite a lot. I think they have more design wins recently than onsemi in this segment. Some market share will move to their products in the next years.

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    3. 36k is total number of employees @ On Semi. Imaging dept is relatively small and only tiny fraction of overall company. Laying off 740 ppl in any imaging company/dept is a significant number of individuals. They are dumping ppl within entire market segments. ie. fire sale!

      I've lost count of how many layoffs in last 2-3 yrs. "Interesting" way of managing their overall business/employees vs long term vision. Way too many employees have been boasting on social media about their cameras on mars perseverance. Somehow i don't think the 740 laid off ppl share the same enthusiasm. Professional courtesy and respect go a long way in creating a successful work environment.

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    4. 740 people is for all the divisions, not only imaging.

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  5. The group of 18 found a new home with OVT.

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    1. ON == (Successful Non-Organic Growth Of Imagers by Acquisition)
      !ON == MANY Possibilities and certainly !OFF.
      !ON == Non-organic growth for others,OV (this time) AMS - CMOSIS (earlier)
      Success for more faster innovation cycles with teams that stay together and manage transitions together.

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