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.

An undisclosed number of Microchip Technology employees in Colorado Springs will receive pink slips in March, part of the chipmaker's plans to lay off about 2,000 of its workers worldwide amid declining demand from automakers.

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.