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“The shutdown for manufacturing team members and pay cuts for non-manufacturing team members are consistent with our long-standing culture of shared sacrifices and down cycles and shared rewards and up cycles,� Microchip CEO Ganesh Moorthy told Wall Street analysts in a conference call Monday.

Revenue fell 41% in the quarter ended March 31, Microchip said Monday, to $1.3 billion. Moorthy said the company is optimistic a rebound is coming but said it has little visibility into what will happen over the next several months.

Microchip and had raised the possibility of additional shutdowns in June. In conjunction with the March shutdowns, executives took a 20% pay cut and other workers outside its factories took a 10% pay cut.

The company said Tuesday that pay cuts will be the same in June. Microchip said the measures represent “shared sacrifice� as an alternative to layoffs.

Microchip in January to expand its Gresham fab and another plant in Colorado, plus awarded last year.

On Monday, though, Moorthy told analysts Monday that “internal capacity expansion actions remain paused� in response to slowing sales.

Microchip declined to explain Tuesday whether that pause affects the Gresham expansion or to provide information on how the pause will impact the company’s government funding.

Microchip’s semiconductors and microcontrollers help run industrial equipment, telecommunications networks, airplanes and autos. Demand for these chips surged during the pandemic but has fallen off considerably in recent months as manufacturers work off surplus inventory.