STMicroelectronics to ‘cut 5,000 jobs in next 3 years’
About 2,000 employees will leave the company due to attrition, bringing the total number of voluntary departures to 5,000, the chipmaker’s CEO Jean-Marc Chery said.
STMicroelectronics expects 5,000 staff to leave the company in the next three years, which includes 2,800 job cuts announced earlier in 2025, the Franco-Italian chipmaker’s CEO Jean-Marc Chery said.
About 2,000 employees will leave the company due to attrition, bringing the total number of voluntary departures to 5,000, Chery said, according to a Reuters report.
STMicro, one of Europe’s largest chipmakers, employs approximately 50,000 people worldwide. The French and Italian and French governments own a combined 27.5% share in the chipmaker through a holding company,
Discussions with stakeholders and authorities over implementation of the cost-cutting measures were progressing, the CEO was quoted as saying by Reuters.
“I do think that one country specifically is harder. And most likely, okay, could delay a little bit our speed of implementation,” Chery said, in an apparent reference to Italy.
Italy’s government has accused the CEO of insider trading, allegations which he denies. In April, Italy’s economy minister Giancarlo Giorgetti had reportedly sought a new industrial plan that would put Italy back at the centre of the company’s development.
Italian unions have described the 1,200 redundancies announced by STMicroelectronics at the Agrate plant in Lombardy as “unacceptable.”
Chery said that the company has seen signs of an upcycle, which will boost its results in the coming quarters, provided trade tensions don’t disrupt developments.
“The dynamic is pretty interesting. Why? Because quarter-to-date, the book-to-bill ratio is well above parity ... This means you are in a dynamic of upcycle,” he was quoted as saying by Reuters.
