Microchip Technology is undergoing significant restructuring in response to a downturn in the automotive chip market. The company has announced the layoff of approximately 2,000 employees, representing 9% of its total workforce. The layoffs will affect facilities in the US, Philippines, and other locations, with particular impact on its Gresham Fab 4 in Oregon, Fab 5 in Colorado Springs, and backend manufacturing plant in the Philippines. These workforce reductions are part of a broader plan to reduce operating costs as the automotive chip sector faces challenges.