Microchip Technology to Cut Jobs, Expects 3Q Revenue Near Low End of Views

Dow Jones12-03 07:28

By Kailyn Rhone

Microchip Technology said it plans to cut its workforce following slower-than-expected turns orders and manufacturing restructuring plans.

The Chandler, Ariz., total system solutions provider said Monday it anticipates the job cuts to affect about 500 employees. Microchip had around 22,300 employees, according to its recent annual report filed in May.

The decision comes after the company said it expects to shut down the manufacturing operations of Fab 2 in its fiscal second quarter due to higher-than-expected inventory levels.

Microchip said it anticipates near-term restructuring costs to be between $3 million and $8 million, but it is possible that the company could incur other restructuring and shut-down costs in the future of up to an additional $15 million.

Microchip doesn't expect to see savings from the shutdown until the beginning of the first quarter of fiscal-year 2026 due to the high inventory of the products which are manufactured in Fab 2.

Turn orders so far in the third quarter have been slower than expected, said Interim Chief Executive Officer and President Steve Sanghi. In result, the company expects revenue to be close to the low end of its previous guidance between $1.025 billion to $1.095 billion.

Shares fell 4%, to $67.27, in after-hours trading. For the year, shares are down 22%.

Write to Kailyn Rhone at kailyn.rhone@wsj.com

(END) Dow Jones Newswires

December 02, 2024 18:28 ET (23:28 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2488434987?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-12-03 07:28","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2488434987","market":"us","top_or_hot":-1,"title":"Microchip Technology to Cut Jobs, Expects 3Q Revenue Near Low End of Views","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<pre>\n \n</pre>\n<p>\n  By Kailyn Rhone \n</p>\n<pre>\n \n</pre>\n<p>\n  Microchip Technology said it plans to cut its workforce following slower-than-expected turns orders and manufacturing restructuring plans. \n</p>\n<p>\n  The Chandler, Ariz., total system solutions provider said Monday it anticipates the job cuts to affect about 500 employees. Microchip had around 22,300 employees, according to its recent annual report filed in May. \n</p>\n<p>\n  The decision comes after the company said it expects to shut down the manufacturing operations of Fab 2 in its fiscal second quarter due to higher-than-expected inventory levels. \n</p>\n<p>\n  Microchip said it anticipates near-term restructuring costs to be between $3 million and $8 million, but it is possible that the company could incur other restructuring and shut-down costs in the future of up to an additional $15 million. \n</p>\n<p>\n  Microchip doesn't expect to see savings from the shutdown until the beginning of the first quarter of fiscal-year 2026 due to the high inventory of the products which are manufactured in Fab 2. \n</p>\n<p>\n  Turn orders so far in the third quarter have been slower than expected, said Interim Chief Executive Officer and President Steve Sanghi. In result, the company expects revenue to be close to the low end of its previous guidance between $1.025 billion to $1.095 billion. \n</p>\n<p>\n  Shares fell 4%, to $67.27, in after-hours trading. For the year, shares are down 22%. \n</p>\n<pre>\n \n</pre>\n<p>\n  Write to Kailyn Rhone at kailyn.rhone@wsj.com \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  December 02, 2024 18:28 ET (23:28 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Microchip Technology to Cut Jobs, Expects 3Q Revenue Near Low End of Views</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMicrochip Technology to Cut Jobs, Expects 3Q Revenue Near Low End of Views\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-03 07:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By Kailyn Rhone \n\n\n \n\n\n  Microchip Technology said it plans to cut its workforce following slower-than-expected turns orders and manufacturing restructuring plans. \n\n\n  The Chandler, Ariz., total ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MCHP","symbol_name":"微芯科技","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2488434987","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2488434987","pubTimestamp":1733182080,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Microchip Technology said it plans to cut its workforce following slower-than-expected turns orders and manufacturing restructuring plans.The Chandler, Ariz., total system solutions provider said Monday it anticipates the job cuts to affect about 500 employees. Microchip had around 22,300 employees, according to its recent annual report filed in May.The decision comes after the company said it expects to shut down the manufacturing operations of Fab 2 in its fiscal second quarter due to higher-than-expected inventory levels.Microchip said it anticipates near-term restructuring costs to be between $3 million and $8 million, but it is possible that the company could incur other restructuring and shut-down costs in the future of up to an additional $15 million.Microchip doesn't expect to see savings from the shutdown until the beginning of the first quarter of fiscal-year 2026 due to the high inventory of the products which are manufactured in Fab 2.Turn orders so far in the third quarter","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"MCHP":"微芯科技"},"translate_title":"Microchip Technology将裁员，预计第三季度收入接近预期的低端","themeId":"85d3c17d8c1efe3f7bfb4ca640afe77c","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MCHP":1},"content_text":"By Kailyn Rhone \n\n\n \n\n\n  Microchip Technology said it plans to cut its workforce following slower-than-expected turns orders and manufacturing restructuring plans. \n\n\n  The Chandler, Ariz., total system solutions provider said Monday it anticipates the job cuts to affect about 500 employees. Microchip had around 22,300 employees, according to its recent annual report filed in May. \n\n\n  The decision comes after the company said it expects to shut down the manufacturing operations of Fab 2 in its fiscal second quarter due to higher-than-expected inventory levels. \n\n\n  Microchip said it anticipates near-term restructuring costs to be between $3 million and $8 million, but it is possible that the company could incur other restructuring and shut-down costs in the future of up to an additional $15 million. \n\n\n  Microchip doesn't expect to see savings from the shutdown until the beginning of the first quarter of fiscal-year 2026 due to the high inventory of the products which are manufactured in Fab 2. \n\n\n  Turn orders so far in the third quarter have been slower than expected, said Interim Chief Executive Officer and President Steve Sanghi. In result, the company expects revenue to be close to the low end of its previous guidance between $1.025 billion to $1.095 billion. \n\n\n  Shares fell 4%, to $67.27, in after-hours trading. For the year, shares are down 22%. \n\n\n \n\n\n  Write to Kailyn Rhone at kailyn.rhone@wsj.com \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  December 02, 2024 18:28 ET (23:28 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2488434987"}