Japanese chipmaker Renesas (RNECY -0.60%)

 

Renesas lays off 5% of its workforce

Last night, Japanese chipmaker Renesas (RNECY -0.60%) announced it would be laying off a little less than 5% of its workforce. While that may not sound like much, Renesas is one of the larger players in the automotive and industrial chip sector, with a $24 billion market cap. The total number of layoffs would amount to about 1,000 employees.

The layoffs are a sign of continued awful demand for auto and industrial-related chips. And keep in mind, this is despite these markets having already been in a downturn for almost three years now. Semiconductor cycles typically last about one and a half to two years, so the fact that Renesas is laying off 5% of its workforce at this seemingly late stage of the downcycle is quite worrying. Given the length of this downcycle, one would think an upturn might be imminent, but apparently that's not the case.