STMicroelectronics may cut 2,000-3,000 jobs in France, Italy - Bloomberg News
FILE PHOTO: The logo of electronics and semiconductors manufacturer STMIcroelectronics is seen outside a company building in Montrouge, near Paris, France, July 12, 2022. REUTERS/Sarah Meyssonnier/File Photo
:French-Italian computer chip maker STMicroelectronics is considering cuts of up to 6 per cent of its workforce or 3,000 workers in its French and Italian plants as part of a restructuring programme, Bloomberg News reported on Friday, citing anonymous sources. A spokesperson for ST could not confirm the figures, but pointed to remarks CEO Jean-Marc Chery made at the company's fourth quarter earnings on Thursday, that the company would open talks with unions on voluntary headcount reductions as part of a $300 million cost cutting program.
Pietro Occhiuto, head of the FIOM CGIL union in Brianza, where STM has a plant, told Reuters the company announced an early retirement plan to the European Works Council with only one position to be reopened for every three people taking early retirement.
Rosy Scollo, head of the Fiom Cgil union in Catania told Reuters they wanted Industry Minister Urso to call a meeting and give reassurances on maintaining current job levels, confirming investments and new hirings.
A spokesperson for Italian Industry Minister Adolfo Urso had no comment. The French finance ministry had no comment.
In May, a 2 billion euros grant from Rome to build a microchip plant in the country that would create 3,000 new jobs was approved for STM.
The company, in which the French and Italian governments hold a 27.5 per cent share, employs 50,000 people worldwide and has been facing a sustained downturn in its key markets, automotive and industrial.
ST first announced its restructuring plans in November, saying it will shift production away from older plants and smaller wafer sizes to focus on more advanced facilities in Crolles, France and Agrate, Italy.
