<p>Microchip is planning to lay off 2,000 employees, representing 9% of its workforce, due to weak automotive demand. The company had previously announced the closure of its Arizona fab in Q3 2025, which would result in 500 job losses and annual cost savings of $90 million. This closure has now been brought forward to May. The current cuts will affect Microchip's facilities in Gresham, Oregon, Colorado Springs, and its backend operations in the Philippines, with annual savings of about $25 million. Costs of $30 million to $40 million related to severance payments and restructuring will be incurred, as well as $45 million for modifications and cancellations of foundry contracts. CEO Steve Sanghi, who took over from Ganesh Moorthy in November 2024, was Microchip's CEO for 30 years before the transition.</p>