Several media reports suggest that NXP is set to announce that it may reduce its global workforce by up to 1,800 positions due to rising market pressures.
Job losses at that scale would be a blow and come at a time when European Union ministers are having to address trade relations with the US - the Trump administration is threatening tariffs that could have a significant impact on key EU exporters such as the automotive sector.
NXP, which has significant operations in Eindhoven, Nijmegen, and Delft, has warned that it cannot fully prepare for potential trade restrictions in the short term.
While trade is a concern the threat of significant job losses is more to do with broader market conditions. While the layoffs will account for only around 5% of its global workforce, the job cuts are expected to impact hundreds of positions globally.
NXP manufactures semiconductors for various internet-connected devices and some of its products being particularly sensitive to economic fluctuations.
The underlying financial performance of the business has also weakened with fourth quarter revenues down 9 per cent on the preceding year at $3.1bn. Over the year, as a whole, revenues fell back 5 per cent to $12.6bn.
Media reports have also suggested that STMicroelectronics is considering reducing its workforce by up to approximately 6%, through a combination of early retirement and natural attrition.
The reduction could affect up to 2000 to 3000 people out of ST’s 50,000 workforce. While the number of cuts is said to be under discussion CEO Jean-March Chery has said that the company is looking to shrink its cost base.
Impacted, like NXP, by continued weakness in its key automotive and industrial market ST has said that Q1 revenues could be down by as much as 28 per cent.