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ST-Ericsson skærer ind til benet

ST-Ericsson vil nedbringe omkostningerne med 120 mio. dollars, og afskediger i den forbindelse 500 medarbejdere (in english).

ST-Ericsson, a joint venture of STMicroelectronics and Ericsson has announced that due to recent changes in the business environment and reduced demand for legacy products at certain customers, it will launch a cost savings plan to achieve about $120 million of annualized savings by the end of 2012.

- These actions while necessary to strengthen the financial position of the company, will not compromise the execution of our new products and delivery to our customers, says Gilles Delfassy, president and CEO of ST-Ericsson.
- We continue to gain traction on our new product portfolio and remain steadfastly committed to leadership in the smartphone and tablet markets.

Also, while the company keeps its strong focus to improving financial performance, the company's path to profitability is expected to take longer, with the target break-even, based on current visibility, now planned later than the previously anticipated second quarter 2012.

T

he cost savings plan includes a global workforce review that may affect up to 500 employees worldwide. Specific country impact related to the plan and further details will be provided when employee representatives have been involved where required. Restructuring costs are estimated to be approximately $55 million, of which the majority is expected to be recorded during the second half of 2011.

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