CHANDLER, AZ — Microchip Technology Inc. has made progress on its plan to turn around the Chandler-based semiconductor company’s overall performance and bottom line, the company’s top executive said on an earnings call Thursday.
Microchip CEO Steve Sanghi said he completed several actions as part of his nine-point turnaround plan, including refining the company's distribution strategy, re-engaging with customers, and changing its long-term business model to reflect current operating conditions.
Sanghi said Microchip resized its manufacturing footprint in its first fiscal quarter, pointing to the decision to close its Tempe manufacturing facility, which was listed for sale in May. In addition, Microchip completed a global layoff of 10% of its employees as part of its efforts to cut expenses. The company had announced plans to cut 2,000 jobs — including 330 workers based at its Tempe fab — by the end of June.
“The decisive actions we have taken under our nine-point plan are enhancing our operational capabilities through more efficient manufacturing, improving inventory management and a renewed strategic focus,” Sanghi said.
