Microchip said Monday the 2,000 layoffs will save $80 million to $90 million on an annual basis. In addition to Oregon and Colorado Springs, Microchip will lay off workers at a factory in the Philippines and 10% of its office workers.

Microchip Technology said on Monday it will cut around 2,000 jobs, or about 9 per cent of its workforce, as the chipmaker restructures its business to combat slowing demand from automakers. The company expects to incur between $30 million and $40 million of costs related to the layoffs,

But in a presentation to investment analysts, CEO Steve Sanghi said Microchip was "doing a slightly smaller layoff" at Gresham while maintaining rotating, two-week time-off periods for workers for two more quarters.