Chipmaker On Semi to cut up to 870 jobs at Sanyo unit

Reuters

Oct 8 (Reuters) - On Semiconductor Corp, a maker ofpower-management chips, said it would cut up to 870 jobs at itsSanyo Semiconductor unit as it looks to reduce costs.

The company said it would cut 600-700 jobs through avoluntary retirement program and take a related charge of about$40 million to $48 million, mostly in the fourth quarter.

It expects to save about $36-$45 million in costs in thefirst year after completing the retirement program.

The company also said it would close a Sanyo unit in Hanyu,Japan, resulting in the loss of 170 full-time and 40 contractjobs.

On Semi has been trying to turn around the loss-making Sanyounit it acquired for about $500 million in January 2011. Thedivision designs, makes and sells radio frequency andpower-related components used in phones and flash memorydevices.

The company, which had about 20,000 employees as of Dec. 31,cut about 250 jobs and canceled annual cash bonuses for seniorexecutives in August last year.

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