STMicroelectronics CEO says 5,000 jobs to be cut in next 3 years

STMicroelectronics expects 5,000 staff to leave the company in the next three years, including 2,800 job cuts announced earlier this year, its chief executive said on Wednesday.


"At the end, it's 5,000 people that will leave the company," he said.


Chery said that discussions with stakeholders and authorities over implementation of its cost cutting program were on track.

In an apparent reference to Italy, he said: "I do think that one country specifically is harder. And most likely, okay, could delay a little bit our speed of implementation", Chery said.

Over the last months, Italy's government has expressed discontent with the firms' chief executive, as STMicro faces a sustained downturn in its key markets, and accused him of iinsider trading. The company denies those allegations.

STMicro, in which the Italian and French governments own a combined 27.5% share through a holding company, employs 50,000 people worldwide.

In November last year, STMicroelectronics detailed its cost cutting program to save hundreds of millions by 2027, with workforce reductions from attrition and early retirement.

In April, STMicroelectronics said voluntary departures would cut 1,000 jobs in France, out of 2.800 planned outside of attrition, while talks with Italy were ongoing. Reuters had reported in the same month Italy pressed to limit the job cuts to 1,000.

During the same event, the CEO of STMicroelectronics said he saw signs of a market upturn this year.