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ON Semi continues to scale back, cuts more jobs

Posted: 03 Aug 2012 ?? ?Print Version ?Bookmark and Share

Keywords:job cuts? rush orders? Donald Colvin?

Following the announcement ON Semi's chief financial officer's plans for resignation, the company has announced its plans to cut additional jobs in hopes to save $10 million to $15 million per year.

ON Semi and its CFO, Donald Colvin, "mutually agreed" to part ways. Colvin joined the company in March 2003 and served as its executive vice president. From April 2003 to May 2010, he served as the company's treasurer. In a statement from the company, Colvin is to remain as CFO for up to 90 days while it conducts a search for a new CFO.

Job cuts ahead
Meanwhile, at a recent conference call, Colvin announced the company's plans to cut 10 percent of non-manufacturing jobs in high cost regions. Colvin further stated that the company carried out a 10 percent reduction in headcount at its Sanyo Semiconductor division during the second quarter.

The announcement came in the wake of ON Semi's second quarter financial report. The company announced second quarter revenue and a third quarter sales target that came up short of consensus analysts' expectations.

Keith Jackson, ON Semi's CEO, said the 10 percent 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," Jackson said.

Like other semiconductor executives in recent earnings calls, Jackson said ON Semi has been hurt by sluggish sales as customer OEMs and distributors continue to maintain very lean levels of inventory. At the same time, Jackson said ON Semi is seeing an unusual amount of rush orders.

"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 said.


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