ST-Ericsson to axe 600 employees
The loss-making cellphones chipmaker is not competitive enough.
| Related news: • New head of ST-Ericsson appointed |
ST-Ericsson, the wireless technology company created in February by French-Italian group STMicroelectronics and Sweden's Ericsson, announced Thursday a plan to improve financial performance and increase its competitiveness in the market, resulting in cost-cutting of 115 million dollars a year.
“These savings are expected to come from reductions in operating expenses and spending, along with an extensive R&D; efficiency program”, the company said in a statement.
As a result, up to an additional 600 employees worldwide are likely to lose their jobs.
In April the joint venture, the second-biggest maker of wireless chips after American Qualcomm and just ahead of Texas Instruments, announced the loss of 1,200 jobs worldwide due to a slowdown in demand.
The company employs approximately 8,000 people worldwide, with more than 85 percent of its staff in R&D;, according to its website.
ST-Ericsson’s third-quarter net loss amounted to $112 million, from $213 million the second quarter.
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Last Updated (Thursday, 03 December 2009 08:31)
