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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.

 

Italy’s Data Regulator Blocks DeepSeek AI Chatbot Over Privacy Concerns

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Italy’s data protection authority, the Garante, has ordered Chinese AI startup DeepSeek to block its chatbot in the country after the company failed to address concerns over its privacy practices. The regulator had questioned DeepSeek about its handling of personal data, including details on what data is collected, its sources, the purposes for which it is used, its legal basis, and whether it is stored in China.

The Garante’s decision came after the company provided what was deemed “totally insufficient” information, prompting the watchdog to take immediate action to protect Italian users’ privacy. DeepSeek has yet to comment on the ruling.

The Chinese startup, which recently claimed that its AI models rival or outperform industry-leading U.S. models at a fraction of the cost, has made headlines for surpassing ChatGPT as the top-rated free app on Apple’s App Store in the U.S. However, its swift rise has drawn increasing scrutiny over data protection.

The Garante’s order, which took effect immediately, also includes an investigation into DeepSeek’s data handling practices. Meanwhile, other European regulators, including those in France and Ireland, are investigating the chatbot’s privacy policy.

In response to Italy’s concerns, DeepSeek stated that it had removed its AI assistant from Italian app stores after facing scrutiny. However, Agostino Ghiglia, a member of the Garante board, revealed that the company’s stance—which claimed it was not subject to Italian regulation—further aggravated the situation, prompting the block. Ghiglia emphasized that DeepSeek’s lack of cooperation had made the situation worse.

As of Friday, some Italian users who had previously downloaded the app reported that the chatbot was still functional on their devices, and the web version of the service remained operational. The Garante emphasized that citizens must have the right to consent based on how their data is handled, especially when servers in countries outside the EU, such as China, may not provide the same privacy guarantees as European standards.

The Garante has been at the forefront of data protection in Europe, with a history of taking action against companies, including a brief ban on Microsoft-backed ChatGPT two years ago over potential privacy rule violations.

 

Italy in Advanced Talks for $1.55 Billion Security Services Deal with SpaceX

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Italy is reportedly in advanced negotiations with SpaceX for a deal worth 1.5 billion euros ($1.55 billion) to provide secure telecommunications services to the government, according to Bloomberg News. The deal, which would span five years, is set to include a range of services, including secure encryption for government communications and satellite services for Italy’s military operations in the Mediterranean and emergency response efforts.

Although the discussions are ongoing and a final agreement has not been reached, the project has received approval from Italy’s Intelligence Services and Defence Ministry, as per the report. The deal would also see the implementation of SpaceX’s satellite services for use in situations such as terrorist attacks or natural disasters.

The talks occur in the context of increasing ties between Italian Prime Minister Giorgia Meloni and SpaceX’s Elon Musk, who is also a close ally of former U.S. President Donald Trump. Additionally, Italy plans to begin testing Starlink satellite-based connectivity for enhancing high-speed internet rollout across the country.