Arizona-based Microchips announced it's laying off about 2,000 employees, including employees at its Gresham, Oregon facility.

Microchip said Monday the 2,000 layoffs will save $80 million to $90 million on an annual basis. In addition to Oregon and Colorado Springs, Microchip will lay off workers at a factory in the Philippines and 10% of its office workers.

The layoffs will affect its Fab 4 facility in Gresham, Oregon; Fab 5 facility in Colorado Springs, Colorado; and its backend manufacturing site in the Philippines.

But in a presentation to investment analysts, CEO Steve Sanghi said Microchip was "doing a slightly smaller layoff" at Gresham while maintaining rotating, two-week time-off periods for workers for two more quarters.

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.

Microchip Technology plans to cut 2,000 jobs, about 9% of its workforce, due to declining automotive demand. The restructuring will cost $30-$40 million, with expected annual savings of $90-$100 million from operations and additional $25 million from employment cuts.

On the same day TSMC said it would spend billions and hire thousands more in Arizona, another computer chip company is pulling back and issuing layoffs.