ST-Ericsson to lay off 1200 worldwide

"A restructuring plan is being launched for immediate execution and is due to be completed by the second quarter of 2010. This plan is incremental to the $250 million cost synergies program announced by ST-NXP Wireless in November 2008. Annualized savings of the new restructuring plan are expected to be approximately $230 million upon completion. Restructuring costs are estimated in the range of $70 - 90 million, of which the majority is expected to be recorded during the second quarter of 2009", says a statement of the company. The restructuring plans sees two main focus areas: a re-alignment of product roadmaps and a reduction in workforce of 1,200 worldwide to reflect further integration activities following the merger, lower sales volumes and limited visibility on the timing of market recovery. The first action is the closure of its Research Triangle Park operations in the USA. As many as 180 jobs could be lost, reports Trading Markets.