ON Semiconductor lays off 2,400 employees globally! The company goes all-in on AI and silicon carbide (SiC) sectors

On February 26, Onsemi announced a restructuring plan to cut 9% of its global workforce (approximately 2,400 employees) by 2025, citing declining demand and revenue pressures. CEO Hassane El-Khoury emphasized that the move is not merely a “cost-cutting” measure but a strategic pivot to focus on the future: maintaining core R&D investments, doubling down on artificial intelligence (AI) and silicon carbide (SiC) technology, and competing head-on with Chinese rivals in performance advantages.

Amid a wave of layoffs, the semiconductor industry is undergoing a brutal “survival race.” Onsemi’s decision reflects broader trends in the sector—trimming costs without sacrificing innovation, scaling back operations while locking eyes on future growth sectors. Whether the company can fortify its moat in AI and SiC will determine if this century-old chip giant can weather the current winter and emerge into spring.