Microchip plans to lay off 500 employees due to reduced orders

Microchip, an American chipmaker, announced that it plans to lay off 500 employees due to slower-than-expected order turnover and an ongoing manufacturing restructuring plan. According to its annual report in May, Microchip has a total of approximately 22,300 employees. In addition, Microchip also expects to close the manufacturing operations of Fab 2 in the second fiscal quarter due to excessive inventory of products produced by the plant. The restructuring costs are expected to be between $3 million and $8 million, but other restructuring and closure costs of up to $15 million may be incurred in the future.