European chipmakerSTMicroelectronicsis to cut up to
4,500 jobs around the world as part of a cost cutting plan to save
over £490m in 2009.
The planned cuts were announced by Carlo Bozotti along with 2008
fourth quarter financial results that showed a £257m net lossfor
the period.
"The [cost cutting] actions are a combination of the ongoing
restructuring initiatives and new programs that are focused on
resizing the company's manufacturing operations and streamlining
expenses," Bozotti said in a statement.
All product areas were negatively affected, in particular
automotive, wireless and computer peripherals, but
STMicroelectronics had grown revenues faster than the overall
semiconductor market, he said.
Current uncertainty in the global financial markets, economic
recession, seasonality, and the effect on demand for semiconductor
products makes it extremely difficult to accurately forecast
product demand, according to Bozotti.
STMicroelectronics is one of the latest chip manufacturers to
announce job cuts after poor results in the last quarter of
2008.
Falling demand for PCs has hit
several large chip manufacturers, including Intel, AMD, Texas
Instruments and Samsung.
Texas Instruments is to cut 1,800 jobs and shed 1,600 more staff
through voluntary retirement, Intel plans to shed up to 6,000 jobs
in 2009, and AMD is to cut 1,100 jobs this year.