Microchip to cut about 2,000 jobs and close Fab 2 sooner, with $30M-$40M in costs
Microchip Technology announced additional restructuring, including about 2,000 headcount reductions across its fabs, Philippines backend facility and business units, and a closure of its Tempe, Arizona Fab 2 that is now expected to finish in May 2025, several months earlier than planned. The company estimates $30 million to $40 million in related costs and about $45 million in charges tied to canceling or modifying long-term wafer supply agreements, against expected annualized operating expense savings of $90 million to $100 million.
Key points
- About 2,000 headcount reductions, starting March 3, 2025, with full implementation expected by the end of the June 2025 quarter
- Estimated restructuring costs of $30 million to $40 million, including cash severance and other related charges
- Expected charges of about $45 million tied to canceling or modifying long-term wafer foundry supply agreements
- Expected annualized operating expense reductions of $90 million to $100 million, plus about $25 million in additional factory employment cost savings
The filing
Written by AI on Nov 8, 2026, 1:30 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on March 03, 2025.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.