Global Sources
EE Times-India
Stay in touch with EE Times India
EE Times-India > Manufacturing/Packaging

ST to shed 4,500 jobs

Posted: 29 Jan 2009     Print Version  Bookmark and Share

Keywords:manufacturing operations  chip industry  layoff  restructuring 

STMicroelectronics Inc. has outlined a major cost-cutting effort in 2009, which includes plans to layoff 4,500 jobs amid loss and poor outlook.

In total, ST plans to reduce its costs by over Rs.3,502.55 crore ($700 million) in 2009. The actions are focused on "resizing" the company's manufacturing operations and streamlining expenses. The company also set a capital spending budget of about Rs.2,502 crore ($500 million) for 2009, representing a 50 per cent reduction in comparison to 2008.

ST also reported sales of Rs.11,388.28 crore ($2.276 billion) in Q4 08, compared to Rs.13,489.81 crore ($2.696 billion) in the third period and Rs.13,719.98 crore ($2.742 billion) in the like period a year ago.

Reflecting the sharp downturn in the global economy, the company said Q4 net revenues decreased 15.6 per cent sequentially and 17 per cent y-on-y, "driven by significant weakness across most geographies and market segments, in particular automotive, telecom and computer."

For Q4 08, the company reported an operating loss of Rs.695.51 crore ($139 million) and a net loss of Rs.1,831.33 crore ($366 million), or minus Rs.21.02 ($0.42) per share, compared to the year-ago quarter operating loss of Rs.75.05 crore ($15 million) and net income of Rs.100.07 crore ($20 million), or Rs.1.00 ($0.02) per diluted share. In the previous quarter, ST lost Rs.1,446.05 crore ($289 million) or minus Rs.77.06 ($1.54) a share.

ST also said Q4 08 restructuring and impairment charges totalled Rs.455.33 crore ($91 million) and largely related to previously committed restructuring programmes. ST-NXP Wireless, a joint venture owned 80 per cent by ST, is consolidated into ST's operating results. The fourth and third quarter 2008 financial review includes the ST-NXP Wireless joint venture.

In a statement, president and CEO Carlo Bozotti said: "Fourth quarter net revenues came in at the mid-point of our updated outlook and reflected the accelerated level of order push-outs and cancellations and decrease in demand as the quarter progressed."

Net revenues for the full year were Rs.49,235.81 crore ($9.84 billion) compared to 2007 revenues of Rs.50,036.39 crore ($10 billion). Net loss, as reported, was Rs.3,932.86 crore ($786 million) in 2008, or minus Rs.44.03 ($0.88) per share, compared to a net loss of Rs.2,386.74 crore ($477 million), or minus Rs.26.52 ($0.53) per share in 2007.

1 • 2 Next Page Last Page

Comment on "ST to shed 4,500 jobs"
*  You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.


Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

Back to Top