NXP is working on plans to reduce its workforce by up to five percent globally, a spokesperson told Dutch daily Eindhovens Dagblad (link in Dutch). The layoffs may not hit all of the firm’s facilities equally. In the Netherlands, management is currently discussing the plans with the works council. Until these talks have concluded, no additional details will be shared.
Like its European peers Infineon and STMicroelectronics, NXP has experienced headwinds in the automotive and industrial markets. The chip maker’s 2024 revenue slid 5 percent year-on-year to 12.6 billion dollars. Net income dropped 10 percent YoY to 2.5 billion dollars. As a sign that the downturn is continuing, NXP has forecasted another 10-percent sequential revenue decrease for Q1 2025. Tariffs and trade wars could exacerbate the situation.
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