June 5, 2025 /SemiMedia/ — STMicroelectronics plans to reduce its global workforce by 5,000 employees over the next three years as part of a broader cost-saving strategy, CEO Jean-Marc Chery confirmed this week.

The downsizing includes 2,800 job cuts announced earlier this year and approximately 2,000 additional departures expected through natural attrition. The initiative is aimed at streamlining operations and mitigating the impact of weak demand in core semiconductor markets.

First revealed in November 2024, ST’s cost-reduction plan targets hundreds of millions in savings by 2027 through voluntary exits, early retirement, and organizational restructuring. The company employs 50,000 people worldwide and is 27.5% jointly owned by the French and Italian governments through a holding entity.

In France, ST expects around 1,000 voluntary exits, while talks with Italian authorities are still ongoing. Italy’s government has urged the company to limit job cuts to fewer than 1,000 positions and strongly opposed a proposed layoff of 1,200 staff at the Agrate facility in Lombardy.

Chery acknowledged that negotiations with stakeholders and authorities are proceeding but warned that implementation could be delayed in some countries due to local challenges.