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

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

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

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?