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STMicroelectronics Considers Job Cuts in France and Italy Amid Restructuring

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STMicroelectronics, the French-Italian semiconductor company, is reportedly planning to reduce its workforce by up to 3,000 jobs, or approximately 6% of its employees, across its French and Italian plants. This move is part of a broader restructuring initiative aimed at cost reduction, as reported by Bloomberg News. While the company did not confirm the exact number of job cuts, CEO Jean-Marc Chery mentioned during the company’s fourth-quarter earnings call that talks with unions would begin regarding voluntary headcount reductions, as part of a $300 million cost-saving program.

Union leaders have raised concerns, with FIOM CGIL union officials in both Brianza and Catania, where STMicroelectronics operates plants, seeking reassurance from the Italian government on maintaining current job levels and ensuring new investments and hiring. The company recently introduced an early retirement program, offering one position for every three workers retiring.

Despite these concerns, the company is continuing to receive significant support, including a €2 billion grant from the Italian government for building a new microchip plant that will create 3,000 jobs.

 

L&T Technology Misses Q3 Revenue Estimates Due to Softer Automotive Spending

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L&T Technology Services (LTTS), an Indian engineering and technology services firm, reported a smaller-than-expected revenue for the third quarter, primarily attributed to reduced spending from its automotive clients. The company posted a 9.6% year-on-year revenue increase, amounting to 26.53 billion rupees ($307.14 million) for the quarter ended December 31. However, this fell short of analysts’ expectations of 26.65 billion rupees, according to LSEG data.

Revenue and Profit Performance

The company also revised its revenue growth forecast for fiscal year 2025, raising it to near 10%, up from the earlier range of 8%-10%, following the acquisition of U.S.-based software firm Intelliswift. Despite this, its net profit fell 4.1%, totaling 3.22 billion rupees, below analysts’ estimate of 3.32 billion rupees. The decline in profit was attributed to increased sales and administrative costs.

Mobility Business Challenges

L&T Technology’s mobility business unit, which includes services to the automotive sector, posted its slowest revenue growth of 4.1% since the company began disclosing such figures in the first quarter of the fiscal year. Analysts noted that the ongoing challenges faced by automakers, including labor strikes and the shift toward electric vehicles, have had a significant impact on L&T Technology’s performance. These factors contributed to the company’s weaker-than-expected earnings.

Market Reaction and Industry Context

Despite the disappointing results, shares of L&T Technology closed 3.1% higher ahead of the earnings announcement. In a broader context, engineering, research, and design (ER&D) services, including technology support for industries like transportation and communications, make up a significant portion of India’s $254 billion technology sector. L&T Technology’s performance reflects the ongoing challenges in the automotive industry, which is grappling with the global shift toward electric vehicles and labor disruptions.

L&T Technology’s results follow a similar trend seen in peer Tata Elxsi, whose shares tumbled 7.6% last week after missing revenue estimates.

Slovak Battery Maker InoBat Secures €100 Million in Latest Funding Round

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Slovak battery manufacturer InoBat announced on Friday that it has raised €100 million ($104 million) in its latest funding round, the largest for a technology company in Slovakia to date. This investment was led by Gotion High Tech, the Chinese battery cell maker and InoBat’s strategic partner. Other contributors included Slovakia’s sovereign wealth fund, Lilium, Bromo Capital, IPM Group, and Cielo Capital, alongside strategic investors such as Amara Raja and Rio Tinto.

Industry Significance

The announcement comes on the heels of Swedish EV battery maker Northvolt’s recent filing for Chapter 11 bankruptcy in the U.S., which has cast uncertainty over the future of Europe’s electric vehicle (EV) battery industry. Northvolt has been seeking to offload its electric industrial battery business by the end of the year, reflecting challenges faced by the sector.

In contrast, InoBat’s latest funding round highlights continued investor confidence in the Slovak company, particularly as Slovakia positions itself as a key player in Europe’s efforts to strengthen its EV battery industry and reduce reliance on Asian suppliers.

Background

In June, Slovakia’s Economy Minister Denisa Sakova announced a €1.2 billion investment plan by Gotion and InoBat to construct an EV battery plant in Slovakia. This project would represent the second-largest investment in the country’s history, underscoring the importance of the automotive sector to Slovakia’s economy.

Despite slower-than-expected demand for EVs, European countries have been competing to attract investments to bolster local battery production capacity.

Strategic Advantages

Andy Palmer, chairman of InoBat’s board, emphasized the importance of the company’s strategy in addressing Europe’s lag in battery technology. “Western Europe has been slow to react to the critical need for battery technology. InoBat has quietly gone about building both its own high-performance cell technology and its pragmatic partnership with Gotion to produce cost-effective cells,” Palmer stated.

Looking Ahead

InoBat plans to scale up the production of European-designed battery cells over the coming year and launch an energy storage business in collaboration with Gotion. Additionally, the company aims to start another funding round to support its expansion across Slovakia, Serbia, and Spain, while accelerating its presence in new markets.

This funding marks a significant step for InoBat as it seeks to meet growing demand for cost-effective and high-performance EV battery solutions amid a shifting European battery landscape.