ON Semiconductor plans additional restructuring aiming at a return to profitability in Q4 2003. Some 4% of its world-wide staff - roughly 300 employees - is to be lost over the next year.

ON Semiconductor plans additional restructuring aiming at a return to
profitability in Q4 2003. Some 4% of its world-wide staff - roughly 300
employees - is to be lost over the next year.
The company expects the workforce reduction and additional cost-reduction
actions to achieve an estimated $80mn in savings in 2003 and an estimated
$125mn in annualised cost savings by the end of 2003. The base of both
comparisons is given with the companys annualised costs for Q3 2002.
Over the next year, the company plans to consolidate into fewer locations
and further streamline operations. The company will achieve the workforce
reductions through attrition as well as voluntary and involuntary
severance programs. The focus will be on reducing costs of manufacturing
and general and administrative operations.
Certain functions will be transferred to sites in Central Europe and Asia
with the goal of supporting the companys continued growth in the Chinese
market.