Core Viewpoint - Onsemi plans to cut 9% of its workforce, approximately 2,400 employees, to maintain innovation amid declining demand and revenue, with expected annual savings of $105 million to $115 million [2][6]. Group 1: Workforce Reduction and Financial Impact - The company anticipates a challenging start to 2025, prompting the workforce reduction to adjust its financial scale while continuing to innovate [2]. - The layoffs are expected to incur costs of $50 million to $60 million, which will be recorded in 2025 [2]. - Onsemi's fourth-quarter revenue fell by 15% to $1.72 billion, with the automotive sector accounting for about half of its revenue [2]. Group 2: Strategic Focus and Innovation - CEO Hassane El-Khoury emphasized that the cuts will not affect R&D spending, focusing instead on pausing ancillary projects that do not impact the company's core business [3][4]. - The company aims to prepare for rising demand in artificial intelligence, indicating that approximately 12 million Onsemi power chips are needed to power 112,000 GPUs [5]. - Onsemi's strategy includes reallocating resources to higher-margin chips while outsourcing other manufacturing processes to enhance competitiveness [7]. Group 3: Market Context and Future Outlook - The semiconductor industry is facing demand fluctuations, particularly in the electric vehicle sector, which has seen a slowdown [7]. - Onsemi's recent layoffs are part of a broader strategy to manage costs and optimize operations in response to current market challenges [7]. - Despite the workforce reduction, Onsemi plans to reinvest some savings into new business initiatives and growth opportunities to strengthen its market position [7].