STMicro reports quarterly loss, lays off 4,500

Summary:The semiconductor manufacturer has announced the redundancies as part of a cost-cutting drive, but it is not yet clear how many cuts will take place in the UK

The semiconductor manufacturer STMicroelectronics has reported a $366m net loss for the fourth quarter of 2008, and has said it will lay off as many as 4,500 jobs in a cost-cutting drive.

The results for the European firm were released on Tuesday. The fourth quarter of the previous year saw a net income of $20m (£14m). It is not yet known how many of the layoffs will take place in the UK — STMicro employs just over 430 employees here, with a sales office in Marlow and research and development sites in Bristol, Edinburgh, Fleet and Daventry.

"Fourth-quarter net revenues came in at the mid-point of our updated outlook and reflected the accelerated level of order push-outs and cancellations and decrease in demand as the quarter progressed," said STMicro president and chief executive, Carlo Bozotti, in the statement that accompanied Tuesday's results. "All product areas were negatively affected, in particular automotive, wireless and computer peripherals."

In the statement, Bozotti said STMicro hoped to reduce its costs by over $700m during 2009, partly through the job cuts. "While it is extremely difficult to predict how the industry will evolve in 2009, we believe it could be a year of fundamental change and opportunity," he added.

Topics: Processors


David Meyer is a freelance technology journalist. He fell into journalism when he realised his musical career wouldn't be paying many bills. His early journalistic career was spent in general news, working behind the scenes for BBC radio and on-air as a newsreader for independent stations. David's main focus is on communications, of both... Full Bio

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.