ON Semiconductor Makes an Effort to Streamline

January 31, 2001 by Jeff Shepard

As part of its long-range plan to transform the company for future business growth, ON Semiconductor (Phoenix, AZ) accelerated its efforts to cut selling, general and administrative expenses. The company directed its efforts towards streamlining internal processes and enhancing operational efficiencies with the overall goal of reducing these expenses by approximately 20 percent in 2001.

Among the actions ON Semiconductor has taken to improve business process efficiencies is a reduction of outside services and consulting. Additionally, the company has merged its planning and customer service groups; curbed air travel; narrowed recruiting efforts; conducted a limited workforce reduction; and limited administrative equipment purchases. The limited workforce reduction had an impact of 350 positions worldwide, a little less than 3 percent of its overall employment numbers.

ON Semiconductor has also taken several actions to increase business activity. The company redeployed sales resources; accelerated the introduction of new products; and implemented focused sales incentives. Employees were asked to use their vacation time and the company took advantage of the holiday periods to reduce variable costs.

ON Semiconductor plans to continue curbing the procurement of expendable goods, subscriptions to periodicals and external services.