New Delhi, January 11: Renesas, the Japanese chipmaker is said to be planning to lay off its employees. Reports suggest that Renesas Electronics is trying to find ways to deal with a decline in its business in the semiconductor industry. The decision of job cuts at Renesas is happening reportedly because there is not much demand for its chips at the moment. This situation reflects the challenges the company is facing in the semiconductor market.

As per a report of Reuters, the Japanese company Renesas Electronics, which produces chips, plans to reduce its workforce by less than 5% worldwide. Reports suggest that around 1,000 employees will be laid off from the company. The company is reportedly facing challenges due to a decrease in demand for its chips, which has led to the decision of a job cut. Layoffs 2025 USA: Microsoft, The Washington Post, Google and Other Leading Companies Planning To Reduce Workforce This Year Amid Challenges; Check List Here.

The company’s decision is said to be a response to weaker market performance. Renesas, which supplies chips to car manufacturers like Toyota and Nissan, has also decided to cancel salary increases that were scheduled for this spring, including those for its top executives. The company has not specified the exact number of jobs that will be eliminated.

Renesas has reportedly stated that the job cuts will improve the company's ability to carry out its long-term growth plans, even while keeping in mind the challenges in the market. It suggests that the company considers these layoffs, which might be necessary to adapt to the current economic conditions and to position itself better for future success. Microsoft Layoffs Coming: Tech Giant To Fire Underperforming Employees in Latest Round of Job Cuts, Says Report.

Renesas is also working to expand its business in different areas. Last February, the company announced that it would acquire an electronics design firm called Altium for USD 5.9 billion. As per multiple reports, Honda and Renesas have signed an agreement to work together to develop high-performance SoCs for software-defined vehicles.

(The above story first appeared on LatestLY on Jan 11, 2025 06:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).