ON Semiconductor Inc. ON shares are trading lower after the company announced significant restructuring plans.

What To Know: The company will reduce its global workforce by 1,000 employees and consolidate nine sites as part of its “Fab Right” strategy to optimize its manufacturing network and consolidate its global corporate footprint.

ON Semiconductor expects to incur charges between $65 million and $80 million in 2024 and 2025 due to employment-related costs such as severance and benefits. However, the company plans to reinvest a substantial portion of the savings from these actions into its workforce and business initiatives.

Despite these measures, there may not be a material reduction in future operating expenses.

ON Price Action: ON Semiconductor shares were down 3.24% to $72.61 at the time of writing, according to Benzinga Pro.