Microchip Tempe plant to close soon, with more than 300 layoffs expected. What we know
The Chandler-based company had announced plans to close the facility in December but said in a March filing that the closure will be several months earlier than previously expected. The facility, located at 1200 S. 52nd Street in Tempe, and equipment from the plant are available for sale. The company did not specify why the closure was accelerated.
According to an investor presentation in February, the company's revenue for the quarter was about $1.03 billion, a decline of nearly 12% quarter-over-quarter and nearly 42% year-over-year. Net debt increased by $33.6 million, but over the past 26 quarters, the company cumulatively paid down $6 billion in debt.
According to the presentation, the company saw $7.6 billion in fiscal year 2024 net sales.
Microchip filed a notice with the state of Arizona on March 3 announcing intent to lay off 330 people from the Tempe facility. When the company announced the closure in December, the plant was not planned to close until September.
The closure of the plant will save the company about $90 million annually, company officials said in the filing.
In addition to shuttering the Tempe facility, the company is reducing its workforce nationally and internationally. The company plans to lay off a total of 2,000 workers, including workers at facilities in Oregon, Colorado and the Philippines.
Microchip plans to notify the employees in March and fully implement the layoffs by June.
Microchip was the 74th-largest nongovernmental employer in Arizona in 2024, according to the Republic 100 list of largest businesses. According to the data, Microchip employed 2,333 people in 2024 in Arizona.
Reach Corina Vanek at cvanek@arizonarepublic.com. Follow her on X, formerly Twitter: @CorinaVanek.
This article originally appeared on Arizona Republic: Microchip to close Arizona facility in May, lay off more than 300
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Los Angeles Times
an hour ago
- Los Angeles Times
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