Why Are On Semiconductor Shares Trading Lower Friday?
Portfolio Pulse from Vaishali Prayag
ON Semiconductor Inc. (NASDAQ:ON) shares are trading lower after the company announced significant restructuring plans, including reducing its global workforce by 1,000 employees and consolidating nine sites. The company expects to incur charges between $65 million and $80 million in 2024 and 2025 due to employment-related costs but plans to reinvest savings into its workforce and business initiatives. Despite these measures, there may not be a material reduction in future operating expenses.
June 14, 2024 | 7:21 pm
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ON Semiconductor shares are trading lower after announcing restructuring plans, including workforce reduction and site consolidation. The company expects significant charges but plans to reinvest savings.
The announcement of significant restructuring, including job cuts and site consolidations, has led to a negative market reaction, causing a 3.24% drop in share price. The expected charges and potential lack of material reduction in future operating expenses contribute to the negative sentiment.
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