Microchip Technology is reducing its workforce across manufacturing and corporate operations by about 2,000 as the embattled chip maker looks to cut costs amid declining sales.

The company will also be shutting down operations at its Arizona chip manufacturing facilities in May, several months earlier than previously expected when the planned closures were announced in December

Microchip has reported five straight quarters of declining sales, with fourth-quarter revenue and profits falling below expectations.

Microchip Technology will announce layoffs of factory workers Monday at its plants in Oregon and Colorado as the chipmaker responds to plunging sales.

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 cutting 2,000 jobs, including Gresham positions

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.

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.