On Monday, ON Semiconductor announced the dismissal of several local employees who provided the company with a variety of services.

ON Semiconductor said that about 40 employees were laid off, but did not provide more specific details. ON Semiconductor stressed that the weak macroeconomic situation will have an impact on the company’s near-term growth prospects, and the reduction of personnel is just one of many measures to cut costs.

In 2018, ON Semiconductor’s total revenue for the fourth quarter was $1.503 billion, an increase of 9% compared to the same period in 2017. However, compared with the third quarter of 2018, earnings fell by 3%.

In a press release on the fourth quarter earnings report, ON Semiconductor said that the automotive, industrial and cloud power markets are still healthy and the company remains optimistic about its long-term prospects.