STMicroelectronics plans to cut more jobs

May 17, 2005 – STMicroelectronics announced yesterday that it planned to cut 3000 jobs by mid-2006 as part of a restructuring plan aimed at recovering profitability following “disappointing” first-quarter results. It said the number of job losses included some cuts already announced, as well as ongoing actions and the additional job cuts to come.

The French-Italian group said the plan was aimed at saving an extra US$90 million (71.2 million euros)/year at completion. It estimated restructuring charges of US$100-130 million. STMicro said the restructuring was taking place amid a competitive environment, marked by “the slowing growth rate of demand and by the continued weakness of the dollar, which especially impacts European-based companies.”

Further details of the restructuring plan will be announced in the coming weeks, said the company, which is 16.3% owned by the French state.


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