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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.

 

STMicroelectronics Cautious on 2025 Outlook Amid Weak Q1 Forecast

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STMicroelectronics (STMicro), one of Europe’s leading semiconductor manufacturers, announced on Thursday that it is too early to provide full-year guidance for 2025, as market uncertainties and inventory corrections continue to weigh on its business. The company warned that sales would decline further in the first quarter, reflecting a prolonged downturn in key markets.

STMicro’s stock fell 6.8% to 22.18 euros by 1226 GMT, hitting its lowest level since June 2020. CEO Jean-Marc Chery told analysts that the company expects the first quarter to mark the low point for 2025 but refrained from offering a full-year outlook due to limited visibility in demand recovery.

The company forecast first-quarter revenue of $2.51 billion, a nearly 28% year-over-year drop, falling short of analysts’ expectations of $2.72 billion, according to LSEG’s IBES data. This follows an earlier warning in November about a steeper-than-usual seasonal revenue decline.

The broader semiconductor industry is facing headwinds, with Texas Instruments, a key competitor, also reporting weak first-quarter projections due to inventory buildup in the automotive and industrial sectors.

To manage the downturn, STMicro plans to significantly reduce production days across its fabrication plants, assembly, and test facilities. Finance chief Lorenzo Grandi stated that some manufacturing sites would undergo temporary closures in the first quarter, with additional reductions likely extending into the second quarter.

Despite these challenges, STMicro reported fourth-quarter net income of $341 million, exceeding analysts’ estimates of $326 million. Strong performance in personal electronics partially offset declining industrial sector revenues.

For 2025, the company plans to scale back capital expenditures, targeting an investment of $2 billion to $2.3 billion, compared to $2.53 billion in 2024 and $4 billion in 2023.