Massive layoffs in this company, to sack 5000 employees due to…, not Ratan Tata's TCS, Narayana Murthy's Infosys or Azim Premji's Wipro, it is…
Ratan Tata and Azim Premji (File)
STMicroelectronics anticipates a total of 5,000 employees to exit the company over the next three years, including 2,800 job cuts announced earlier this year, according to Chief Executive Jean-Marc Chery.
Speaking at a BNP Paribas event in Paris on Wednesday, Chery noted that around 2,000 employees are expected to leave the Franco-Italian chipmaker through attrition in which voluntary departures also contribute to the overall reduction.
The CEO added that discussions with stakeholders and authorities over implementation of the cost-cutting program were on track. He said: 'I do think that one country specifically is harder. And most likely, okay, could delay a little bit our speed of implementation', Chery said.
In the last few months, Italy's government has expressed discontent with the firms' chief executive, as STMicro faces a sustained downturn in its key markets, and accused him of insider trading. The company denies those allegations.
The Italian and French governments own a combined 27.5% share in STMicro, through a holding company which employs 50,000 people worldwide.
STMicroelectronics had revealed its cost cutting program last year according to which they wanted to save hundreds of millions by 2027.Workforce reductions from attrition and early retirement were also part of it.
In April, STMicroelectronics said voluntary departures will cut 1,000 jobs in France, out of 2,800 planned outside of attrition, while talks with Italy were ongoing.
Reuters had reported in the same month Italy pressed to limit the job cuts to 1,000.
Chery also said on Wednesday he saw signs of a market upturn this year. Shares of the company closed up 11.1% at 24.94 euros per share which was their biggest one-day gain since late March 2020.
(With Inputs From Reuters)
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