NXP to cut 1800 jobs

NXP Semiconductors is planning 5% cuts to its workforce that could be as much as 1800 jobs.

This follows a similar cut in roles at STMicroelectronics.

“NXP continues to navigate through a challenging cyclical market environment, strategically evolving the company’s investments in R&D and innovation to address shifting market dynamics and deliver value for its customers, partners and team members, now and into the future,” the company told eeNews Europe.

“In alignment with its strategy and resulting investment reprioritization, NXP has commenced a focused reduction of roles within certain areas of the company representing less than 5% of our global workforce while also hiring for critical roles to help enable long-term growth opportunities. As such, the number of NXP team members will remain relatively flat.”

For the full calendar year 2024, revenue was $12.61 billion, down 5% year on year, driven by the fall in its largest segment, automotive.

“While the second half of 2024 did not play out as we had originally expected, we rigorously focused on what is under our own control to minimize the impact on our financial performance,” said Kurt Sievers, CEO of NXP Semiconductors.

“In automotive, full-year revenue was $7.15 billion, down 4% year on year, primarily a reflection of declining automotive production in Europe and Japan, exacerbated by inventory digestion at Western Tier 1 customers in an uncertain automotive demand environment.”

He expects the first quarter of 2025 to be down further with a 9% fall. The company recently took out a €1bn loan to fund research and development projects through 2026.

“The visibility we have is really, really poor. Given the low order lead times, there is a lot of turns business and customers place their orders very late,” he said.