12/4/2009 11:55:00 AM
ST Ericsson to cut up to 600 jobs
Mobile phone chip maker ST Ericsson is planning to cut upto 600 jobs – 7.5%
of its workforce – in a bid to make annual savings of an additional $115m.
This is the latest development in a major restructuring programme at ST
Ericsson which has already seen 500 staff cut in November to save $250m and
1,200 redundancies in April to save $230 a year. The savings are to be made
through operating cuts and an overhaul of its R&D division.
The company was created by the merger of the wireless chip operations of
three groups - Ericsson, NXP Wireless and ST Microelectronics
ST Ericsson supplies chips for mobile phones made by Nokia, Samsung, Sony
Ericsson and LG Electronics. In October, the company reported a $121m operating
loss on net sales of $728m. Its profitability has been hit by the strong Euro.