Power Integrations, the San Jose maker of high‑voltage power‑conversion chips, has cut roughly 7% of its global workforce after sales softened at the end of 2025. Company leaders are calling it a restructuring move, saying the cuts are meant to bring costs back in line with demand and free up cash for higher‑priority product lines. Local employees are among those affected as management shifts more attention to GaN technology and industrial uses.
Financial hit and the restructuring
In last Thursday's earnings release, Power Integrations reported fourth‑quarter net revenue of $103.2 million, about a 13% drop from the prior quarter, and said it had "carried out a restructuring plan, reducing its global workforce by seven percent" while expecting a $3.5 million to $4.0 million charge in the first quarter tied to severance and related expenses, according to Power Integrations. The company also reported full‑year 2025 revenue of $443.5 million and framed the headcount reduction as a way to create greater flexibility to invest in new products.
Headcount and local reporting
Based in San Jose, Power Integrations reported in its most recent 10‑K that it employed 865 full‑time staff as of Dec. 31, 2024, a level that makes a 7% reduction roughly equivalent to about 60 positions worldwide, according to that filing. Those figures appear in the company’s SEC documents. The job cuts were also covered by the Silicon Valley Business Journal, which highlighted the impact on the San Jose operation.
Management's rationale
CEO Jen Lloyd said the company returned to growth in 2025 and that leadership is now reshaping the organization to emphasize PowiGaN and high‑power products for data‑center, industrial, and automotive customers. "I am pleased that we returned to growth in 2025," Lloyd said, per Power Integrations, while also stressing that expenses must better match revenue so that Power Integrations can keep investing where it sees long‑term opportunity. Executives described the layoffs as difficult but necessary to support product ramps and targeted markets.
How this fits the chip cycle
The move aligns with a broader trend in the chip sector, where companies have been resetting costs as they work through inventory buildups and choppy demand across different end markets. Other semiconductor suppliers have disclosed job cuts in recent quarters amid weak appliance and automotive orders, according to coverage of recent chipmaker layoffs. Analysts note that analog and power chip makers that straddle both consumer and industrial businesses are especially vulnerable to uneven order patterns, and many are tuning headcount and spending accordingly.
What to watch next
Analysts and local labor watchers are eyeing WARN filings and future SEC reports for more detail on where and when roles were eliminated, and whether additional cost moves might follow. Coverage of the earnings release also points to Power Integrations’ first‑quarter revenue guidance and its ongoing shareholder returns program as key markers of whether the restructuring actually delivers more flexibility and investment capacity. For now, the company expects first‑quarter revenue in the low hundreds of millions and plans to book the one‑time restructuring charge in Q1.
