The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Computer, Electrical Electronic And Optical Products Manufacture Of Computer, Electronic And Optical Products 26.11 - Manufacture of electronic components
430 jobs Number of planned job losses
Announcement Date
27 January 2016
Employment effect (start)
6 May 2016
Foreseen end date
31 December 2017
Description
The Franco-Italian semiconductor STMicroelectronics has announced it will cut about 430 positions in France as part of a restructuring plan that involves 1,400 jobs worldwide out of a total workforce of 43,000 employees. The restructuring comes after the decision to cease production of microchips for set-top boxe and home gateway products. All of the job cuts in France will be through a voluntary departure plan. The management will also redeploy positions to other activities. 'This difficult decision is consistent with our strategy to only participate in sustainable businesses and is due to the significant losses posted by our set-top box business over the past years in an increasingly challenging market', chief executive officer Carlo Bozotti said. In 2016, the workforce re-alignment is anticipated to affect about 150 employees in France. Once completed, 'annualised savings are estimated at $170 million upon completion and restructuring costs at about $170 million', explained the company. The net revenues of $6.90 billion for the full year 2015, represented a decrease of 6.8% in total. The set-top box activities have generated a lost of $250 million in 2015 for a turnover of $209 million. The announcement is not a surprise for the unions as STMicroelectronics warned the French minister of Economy in the last Summer about the risk of employment destruction within its company. The unions denounced the strategy of the company. The issue is closely followed by the government as the French state is one of STMicroelectronics shareholders with the Italian state.
Sources
28 January 2016: Les Echos
27 January 2016: Company press release
21 September 2015: Le Figaro
Citation
Eurofound (2016), STMicroelectronics Alps, Internal restructuring in France, factsheet number 86298, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/86298.
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