© anthony bolan dreamstime.com Electronics Production | May 29, 2013
ST-Ericsson wants to keep talent
A new company - where engineers from ST-Ericsson can join forces - could become a reality. A viable alternative to layoffs.
At the moment, the fate of the 1'300 employees at ST-Ericsson's Swedish location in Lund is rather uncertain. Notice had been given to staff in March. However, the company failed to state how many employees would be affected by layoffs, resulting in wild speculations in both - local press and the industry. So far, the public knows that between 400 - 600 people are likely to be affected. More information, but still not enough. Swedish local newspaper Sydsvenskan writes that one of the solutions discussed is to form a new company to absorb the skilled workforce that will be made redundant at ST-Ericsson. A similar solution was implemented after the layoffs at Sony Mobile in Lund, formerly known as Sony Ericsson. The new company - apparently being discussed now - would operate as a consulting firm, specialized in Linux and open source solutions, as well as application processors. After parent companies STMicroelectronics and Ericsson decided to dissolve the JV, the Lund facility has been transferred over to Ericsson. The Swedish telecom-giant's focus will be on a range of mobile modems at the expense of the application processor development, causing staff involved in that particular area to be hard hit by the expected layoffs.