(COLORADO SPRINGS) — According to Colorado’s Department of Labor and Employment (CDLE), Microchip has announced that the manufacturer is planning to reduce the workforce at its Colorado Springs location by 238 employees.

In a Worker Adjustment and Retraining Notice (WARN) letter sent to CDLE, Microchip said the company has decided to substantially reduce manufacturing operations at the Colorado Springs facility located at 1150 Cheyenne Mountain Road. The company notified 238 employees that they will be permanently laid off in 60 days, or between May 3 and May 6.

Back in January 2024, Microchip announced it would use $90 million in recently secured federal grant funds to expand its Colorado Springs facility and create over 400 jobs in the next six years.

Affected staff will be laid off immediately but will be paid their normal wages and benefits for the 60 days, and they can use that time to look for other employment. The WARN letter lists the majority of job titles being laid off as technicians and engineers.