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Manufacturing/Packaging  

ST to shed 4,500 jobs

Posted: 29 Jan 2009     Print Version  Bookmark and Share

Keywords:manufacturing operations  chip industry  layoff  restructuring 

Net loss included pre-tax restructuring and impairment charges (Rs.2,406.75 crore ($481 million)), in-process R&D costs (Rs.485.35 crore ($97 million)), inventory step-up charges from NXP Wireless purchase accounting (Rs.440.32 crore ($88 million)), other-than-temporary impairment charge on financial assets (Rs.690.50 crore ($138 million)) and the impairment related to the Numonyx equity investment (Rs.2,401.75 crore ($480 million)) of Rs.6,424.67 crore ($1,284 million) with a tax impact of Rs.705.51 crore ($141 million) (Rs.64.05 ($1.28) impact to earnings per diluted share in total) and Rs.6,479.71 crore ($1,295 million) (Rs.64.55 ($1.29) impact to earnings per diluted share impact in total) for 2008 and 2007, respectively.

Going forward, the company is currently planning for revenues to be in the range of Rs.7,505.46 crore to Rs.9,256.73 crore ($1.5-to-$1.85 billion). As ST works to reduce inventory levels during this timeframe, fab loading will run at levels of about 50 per cent.

Tough time
It's been a tough time for the chip industry. AMD, Intel, IBM, NXP, On Semi, TI and others have announced layoffs amid poor results.

This week, Texas Instruments Inc. said it will lay off 12 per cent of its workforce, or approximately 3,400 employees, as it restructures operations following one of the worst sequential and y-on-y quarterly performances in the history of the analogue and digital signal processor company.

The other shoe recently dropped at Intel Corp., as the chip giant will close two fabs and three IC assembly factories.

The actions at what comes to four sites, when combined with associated support functions, are expected to affect between 5,000 to 6,000 employees worldwide.

- Mark LaPedus
EE Times


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