Malvern-based Vishay Intertechnology, the manufacturer of discrete semiconductors and passive components, is planning to cut $15 million in costs annually across its global footprint, writes Michelle Caffrey for the Philadelphia Business Journal.

According to the company, the implementation of the cuts will cost approximately $25 million.

The company employed 24,100 people worldwide in December 2018, but CEO Gerald Paul said in a call with analysts earlier this week that Vishay had reduced employment since then by 2.4 percent to 23,565 employees.

News of the cuts preceded the second-quarter earnings announcement, when the company reported revenues of $685.2 million, approximately 10 percent lower than the second quarter of 2018.

The reduced revenues were the result of lower demand caused by high levels of inventory in the supply chain, said Paul.

Vishay plans to first offer some of its employees voluntary retirement and separation agreements with benefits, depending on the location and classification of the job. However, it is likely additional layoffs will be necessary afterwards to reach its cost-cutting goals.

The entire process is expected to be completed by December 2020.

“We are managing the current slowdown professionally,” said Paul, “consistent with our history.”

Read more about Vishay Intertechnology in the Philadelphia Business Journal here.

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