STMicro to cut 3,000 jobs outside Asia

16th May 2005, Comments 0 comments

PARIS, May 16 (AFP) - Semiconductor maker STMicroelectronics said Monday it planned to cut its workforce outside Asia by 3,000 people by mid-2006 as part of a restructuring plan aimed at recovering profitability following "disappointing" first-quarter results.

PARIS, May 16 (AFP) - Semiconductor maker STMicroelectronics said Monday it planned to cut its workforce outside Asia by 3,000 people by mid-2006 as part of a restructuring plan aimed at recovering profitability following "disappointing" first-quarter results.  

The French-Italian group said the plan was aimed at saving an extra USD 90 million (EUR 71.2 million) per year at completion. It estimated restructuring charges of USD 100 - USD 130 million.  

STMicro said the restructuring was taking place amid a "competitive" environment, marked by "the slowing growth rate of demand and by the continued weakness of the dollar, which especially impacts European-based companies."  

It said the number of job losses included some cuts already announced, as well as ongoing actions and the additional job cuts to come.  

Further details of the restructuring plan will be announced in the coming weeks, said the company, which is 16.3 percent owned by the French state.  

STMicro shares were up 0.09 percent at EUR 11.60 in Paris after the announcement, having been suspended earlier at the company's request ahead of the statement, off earlier highs. The CAC 40 index, meanwhile, was 0.29 percent lower at 4,006.14 points.

© AFP

Subject: French News

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