ST-Ericsson to lay off 500 as part of cost-savings plan

ST-Ericsson is still trying to reach break even

ST-Ericsson this week said it would cut up to 500 jobs as part of a cost-savings plan that could help the company reach profitability sooner.

The company, a joint venture between STMicroelectronics and Ericsson, develops communication radios and application processors for smartphones and tablets. The company is best known for its 2G, 3G and 4G communication radios, and has a small presence in the application processor space.

Jobs will be cut across all functions, including research and developments, sales and administration, said Roland Sladek, a spokesman for ST-Ericsson, in a statement. The company declined to comment on customers or products that affected the company.

ST-Ericsson said it hopes to achieve annualized savings of US$120 million by the end of 2012. ST-Ericsson said the cost-savings plan comes due to a "recent change in the business environment" and reduced demand for older products by certain customers.

Some chip makers have been struggling as smartphone and tablet companies such as Nokia lose market share to companies such as Apple. Texas Instruments earlier this month lowered its revenue forecast for the second fiscal quarter due to lower demand for its products from phone maker Nokia. ST-Ericsson's major customers include Nokia and Samsung.

The company, based in Geneva, started operations in 2009 and is still trying to reach profitability. The company was aiming for break-even by the second quarter of 2012, but said the current conditions could delay that target.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesSTMicroelectronicsEricssonlayoffs

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?