PORTLAND, Ore. (KOIN) — Arizona-based Microchips announced it’s laying off about 2,000 employees, including employees at its Gresham, Oregon facility.

Monday’s announcement said Microchip, which is part of the semiconductor industry, is making cuts at all of its facilities, including those in Colorado Springs, Colorado and in the Philippines.

The company did not provide an exact number of expected layoffs at its Gresham facility, which currently employs 700 people.

In a statement provided by Microchip’s media team, Microchip President and CEO Steve Sanghi said, “Microchip has been navigating an inventory correction that’s occurring in the midst of a semiconductor downcycle. While the company has taken steps to right size inventory and reduce expenses— including temporary pay reductions and mandatory shutdowns—these measures have not been enough. It is with a heavy heart that I announced layoffs across Microchip factories and non-manufacturing positions. We have tried to avoid this step, but current business conditions require us to take significant measures to right size our inventory and remain competitive in today’s challenging market environment. We did not make this decision lightly and deeply regret the impact it will have on our employees.”

Microchip announced in November 2024 it was closing its Tempe, Arizona facility by September 2025, but on Monday said that it pushing up the facility closure to May 2025.

However, Microchip officials said product manufacturing from the Tempe facility will be moved to the facilities in Gresham and Colorado Springs.

Monday’s announcement also had Sanghi tell investors “When excess inventory is corrected, we will ramp back up to meet the demand rate.”

Stay with KOIN 6 News as this story develops.