ST eyes workforce reduction of up to 3,000 jobs
STMicroelectronics is reportedly considering a significant workforce reduction, potentially affecting up to 6% of its employees, reports Bloomberg citing sources with insight.
workforce reduction, largely focused on voluntary departures and early retirements, is expected to impact between 2,000 and 3,000 positions across the company’s operations in Italy and France.
Discussions are ongoing, and no final decision has been made regarding the scale or specifics of the job cuts. However, an official announcement could come as early as next month.
The French and Italian governments, which collectively own 27.5% of STMicroelectronics, are working to mitigate the impact of the downsising. A company spokesperson told Bloomberg that the company will soon initiate discussions with employee representatives to implement voluntary career-transition programs, including early retirement options.
STMicroelectronics' CEO, Jean-Marc Chery, emphasised the broader strategic context of these measures during the company’s Q4 and full-year 2024 earnings call. He reiterated that the “reshape program,” introduced in October 2024, is designed to enhance the company's manufacturing capabilities — specifically by expanding 300mm silicon wafer production in Agrate and Crolles and scaling up 200mm SiC fabrication in Catania. At the same time, the initiative aims to resize the company's global cost base.
“This program should result in strengthening our capability to grow our revenues with an improved operating efficiency resulting in annual cost savings in the high triple-digit million-dollar range exiting 2027,” the CEO said.
