Microchip Gresham Plant: 2-Week Furlough Amid Sales Drop
Microchip has disclosed plans for a temporary operational adjustment at its Gresham facility in the United States, involving a two-week hiatus for employees in March, with the potential for an additional break in June. This decision is in response to a notable downturn in sales. The workforce was informed of this development shortly after Microchip successfully secured $72 million in federal funding for the expansion of the Gresham plant. An additional $11 million in state funds has been earmarked for the same expansion project.
The upcoming March hiatus is positioned as a strategic, short-term measure aimed at assisting the company in navigating through a brief period of market slowdown. The Gresham facility, home to around 900 employees, will see this adjustment. It is crucial to note that this temporary operational shift will not impede Microchip's ongoing plans for the expansion of its Gresham facility. Rather, it reflects short-term challenges related to a backlog in customer inventory. Importantly, Microchip assures stakeholders that this adjustment will not result in any workforce reductions. Microchip's CEO, Ganesh Moorthy, affirmed in a statement, "During periods of business uncertainty, we may, at times, request our team to collectively participate in shared sacrifices, such as brief operational adjustments, to maintain an optimal workforce and avoid any layoffs. Recognizing the cyclical nature of industries and businesses, our resilience and agility position Microchip for stability across diverse business landscapes."
Microchip, a prominent producer of microcontrollers (MCUs) and analog semiconductors, plays a pivotal role in supplying essential electronic components for various industries, including automotive, aerospace, communications, and industrial sectors. Following a surge in sales triggered by supply chain challenges during the pandemic, Microchip proactively announced plans to expand its Gresham plant, aligning with the sustained demand for its products.
