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ST looks to cut up to 6% of staff, says report

ST looks to cut up to 6% of staff, says report

Business news |
By Peter Clarke

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Struggling European chipmaker STMicroelectronics NV is looking to cut between 2,000 and 3,000 staff to address a slump in the industrial and automotive chip markets it serves, according to Bloomberg.

The staff cuts are set to implemented by way of an early retirement program in its French and Italian wafer fabs with limited numbers of replacement positions being opened up, the agency said.

ST announced a “resizing” plan in 2024 with the goal of saving the company close to US$1 billion per year in operating costs by 2027 but did not discuss how many employees it would impact. The numbers have now come from sources Bloomberg did not name. ST has workforce of approximately 50,000 people.

ST tips restructuring program and a weak start to 2025

Reuters  said that union leaders in Italy had confirmed that ST had announced an early retirement plan at the European Works Council and had said that only one-position in three would be replaced of those that took retirement.

There are calls from the unions for the Italian government to open talks with ST and obtain guarantees on investments and that current job levels will be maintained, Reuters said.

ST recently suspended a plan to build a €7.5 billion 300mm wafer fab at Crolles with GlobalFoundries. That plan could have received a subsidy of up to €2.9 billion. The prospects for the plan to be picked up later are said to be “uncertain.”

Related links and articles:

www.st.com

News articles:

ST, GloFo suspend plan for joint wafer fab, say reports

ST plans temporary fab closures after 2024 fall

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