ST-Ericsson to cull 600 in latest cuts

Dylan Bushell-Embling
04 Dec 2009
00:00

Wireless chip firm ST-Ericsson will slash up to 600 jobs, as part of a third wave of cost-cutting designed to save an extra $115 million per year.

The chipmaker said it aimed to reduce operating expenses and overhaul its R&D activities to boost efficiency.

The job cuts will affect up to 7.5% of ST-Ericsson's 8,000 employees world wide. More than 85% of the company's employees work in R&D.

ST-Ericsson also announced 500 job cuts in November to save $250 million per year, and another 1,200 in April to generate annual savings of $230 million, the Financial Timessaid.

The cutbacks are part of the venture's attempt to remain above water without having to call on its parent companies for a bailout.

The loss-making JV between ST-Microelectronics, Ericsson and NXP Wireless ended Q3 $112 million in the red, and had posted a $213 million net loss the quarter before.

The company was set up as a 50:50 joint venture in February. It generated pro-forma sales of about $3.6 billion in 2008.

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