Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The Franco-Italian semiconductor STMicroelectronics has announced it would cut about 1,400 jobs worldwide (on a total workforce of 43,000 employees) as part of a global reorganisation plan affecting its set-top box and home gateway activities. The job cuts includes about 430 positions in France through a voluntary departure plan, 120 in the united States and 670 in Asia.
The management will also redeploy 600 positions to other activities. "Deployment of the plan by country or site will be subject to applicable legislation and will depend on local negotiations", according management. "This difficult decision is consistent with our strategy to only participate in sustainable businesses and is due to the significant losses posted by our set-top box business over the past years in an increasingly challenging market", chief executive officer Carlo Bozotti said. In 2016, the workforce re-alignment is anticipated to affect about 1,000 employees worldwide. Once completed, "annualised savings are estimated at $170 million (EUR 156 million) upon completion and restructuring costs at about $170 million (EUR 156 million)", explained the company. The net revenues of $6.90 billion (EUR 6.3 billion) for the full year 2015, represented a decrease of 6.8% in total. On the same period, its operating margin decreased from 3.5% to 2.5%, far from the 10% targeted by management few years ago.
The set-top box activities have generated a loss of $250 million (EUR 229.5 million) in 2015 for a turnover of $209 million (EUR 192 million). Worldwide restructuring were reported in 2007 (4,000 job cuts) and 2009 (4,500 job cuts).
Eurofound (2016), STMicroelectronics, Internal restructuring in World, factsheet number 86299, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/86299.
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