February 3, 2025 /SemiMedia/ — STMicroelectronics is considering cutting approximately 6% of its workforce, or between 2,000 and 3,000 jobs, due to long-term weak demand in the industrial and automotive sectors. The plan is expected to be announced as early as next month and will mainly affect the company’s operations in Italy and France.

STMicroelectronics CEO Jean-Marc Chery stated during the company’s earnings call on January 30 that the company is looking for ways to reduce costs and plans to offer early retirement options for some employees. He added that the company will discuss a voluntary departure plan with employee representatives. The ongoing industry downturn has led the Geneva-based company to continuously lower its financial targets, with its stock price falling more than 45% over the past 12 months.

According to sources, the Italian and French governments together hold a 27.5% stake in STMicroelectronics. The Italian government is seeking to minimize the impact of the restructuring on the country’s workforce. A company spokesperson said, "In the coming weeks, we will begin constructive dialogue with employee representatives on voluntary career support plans, including early retirement." However, the spokesperson declined to comment further. Representatives from the French Ministry of Finance and the Italian Ministry of Industry also declined to comment.

In its January 30 earnings report, STMicroelectronics forecast 2024 to be the worst year for the industry in decades and predicted first-quarter revenues would fall below analysts’ expectations. The company did not provide a full-year outlook, breaking with tradition. Last week, competitor Texas Instruments also issued a disappointing quarterly forecast, citing weak demand and rising manufacturing costs.

The job cuts at STMicroelectronics reflect the ongoing challenges facing the global semiconductor industry. With demand continuing to weaken, the company is taking steps to tighten operations. In the coming weeks, it will engage in discussions with employee representatives to finalize the details of the layoffs and early retirement plans.