STMicroelectronics Slashes More Jobs Than Previously Predicted
STMicroelectronics to Reduce Workforce Larger Than Anticipated
Facebook Twitter Whatsapp E-Mail Print Copy Link Chip maker STMicroelectronics is eliminating more positions than initially forecasted. Jean-Marc Chery, CEO of the Infineon competitor, revealed at a BNP Paribas bank event that due to natural attrition, the employment count will drop by an extra 2,000 workers . Combined with the 2,800 job cuts announced earlier, this results in a total workforce decrease of 5,000 employees. Presently, STMicroelectronics has approximately 50,000 employees on its payroll.
The corporation is grappling with weak demand, specifically from the automotive sector. As a result, it has initiated a vast cost-saving program worth hundreds of millions of euros, including factory closures.
In a twist, STMicro CEO Chery declared positive industry signs only hours before announcing job cuts. "Since the commencement of the quarter, new orders have outstripped current sales, pointing towards recovery," he stated.
Stats and Facts 📊
- STMicroelectronics is distancing itself from 5,000 employees over the next three years in a bid to contend with the current market conditions, including a downturn in the automotive and industrial sectors[1][2][3].
- Almost 40% of the company's revenue comes from the automotive sector, and it has been affected by the dwindling semiconductor market, which encompasses a fall in demand for consumer electronics and automotive components[3]. The job reductions, consisting of 2,800 terminations and 2,200 employees leaving through attrition, are intended to aid in stabilizing margins and achieving annual savings of €600 million by 2027[3][5].
- The job cuts, primarily due to market conditions and cost-cutting, are also an attempt to stay competitive amidst a sector-wide decline[3][4].
The job cuts at STMicroelectronics, totaling 5,000 employees, are not only due to market conditions and cost-cutting but also aim to stay competitive in the industry. This restructuring includes the Manufacture of other electrical equipment as STMicroelectronics distances itself from its workforce in response to the current market conditions, such as a downturn in the automotive and industrial sectors. The financial implication of this decision could help the company achieve an annual savings of €600 million by 2027, potentially impacting the overall finance and business landscape of the electronics industry.
