February 5, 2025 /SemiMedia/ — NXP (NXP Semiconductors) has announced that it may lay off up to 1,800 employees worldwide. The decision comes amid growing market pressures as European Union ministers discuss trade relations with the United States. The company, which operates major facilities in Eindhoven, Nijmegen, and Delft, stated that it cannot swiftly adapt to potential trade restrictions in the short term.

An NXP spokesperson acknowledged the uncertainty, stating, "We do not know exactly what will happen, so it is difficult to predict. Producing a chip takes several months, and adjusting output daily is nearly impossible."

Despite the layoff announcement, NXP clarified that this decision is not directly linked to concerns over a potential trade war but rather reflects broader market conditions. The company expects its workforce to shrink "slightly," with global job cuts not exceeding 5% of total staff.

With over 34,000 employees worldwide and approximately 2,500 in the Netherlands, NXP stated that the layoffs would not necessarily be proportional across different locations. The company also acknowledged that import tariffs could drive up prices and dampen demand but emphasized the need to assess the duration and impact of such measures on various industries.

NXP manufactures semiconductors for a wide range of internet-connected devices, with some product lines being particularly sensitive to economic fluctuations. The company has had to adapt to declining demand for automotive chips, a key segment of its business.

In its financial report for 2024, NXP reported a decline in both revenue and profits compared to the previous year due to ongoing economic challenges. The company posted $12.6 billion in revenue, down from $13.3 billion in 2023, with operating profit decreasing by 6% to $4.4 billion.

Through these adjustments, NXP aims to navigate the evolving market landscape while maintaining stability and competitiveness in the semiconductor industry.