ADI to Cut Over 100 Jobs in California by January 2024

In accordance with an official notification submitted to the California Employment Development Department (EDD), a recent workforce reduction initiative has been disclosed by prominent technology companies, namely Analog Devices (ADI), ForgeRock, Nextdoor, and Flex. The collective implementation of these measures is anticipated to result in the elimination of 350 job positions.

Noteworthy among these developments is ADI's decision to reduce its workforce by 111 individuals at the Rio Robles office building in northern San Jose, with the effective date of these layoffs set for January 12, 2024. ADI, a significant player in the analog integrated circuits (IC) sector, reported a 16% year-over-year decrease in revenue, amounting to $2.72 billion, in its fourth-quarter report released on November 21. This decline was attributed to the impact of heightened semiconductor inventory, slightly surpassing the FactSet survey projection of $2.7 billion.

Within the revenue segmentation of ADI, automotive sales demonstrated growth, increasing by 14% to $730 million, constituting 27% of the overall revenue. Conversely, industrial revenue, the most substantial revenue stream at approximately 50%, experienced a 20% year-over-year decline to $1.35 billion in the fourth quarter.

For the entire fiscal year of 2023, ADI reported a revenue of $12.3 billion, reflecting a 2% increase from the previous year, propelled by record performances in the industrial and automotive sectors. The company's gross profit increased by 5% to $7.9 billion, featuring a gross profit margin of 64%. Operating income experienced significant growth of 17%, reaching $3.8 billion, resulting in an operating profit margin of 31.1%.

In addition to ADI, documentation from the EDD discloses that Nextdoor, a hyper-localized social networking service, is in the process of laying off 99 employees in San Francisco. Simultaneously, identity and access management software company ForgeRock is implementing a reduction of 109 positions in the same city. Furthermore, electronic manufacturing services company Flex is reducing 31 positions in Milpitas, California.

An analysis of compiled correspondence, consisting of hundreds of letters submitted to the EDD, indicates that over the past two years, commencing in January 2022, technology companies in the San Francisco Bay Area have collectively undertaken significant workforce reductions, surpassing 31,900 employees, including the latest disclosed layoffs.