STMicroelectronics is considering job cuts of up to 6% of its workforce, or approximately 2,000 to 3,000 workers, across its French and Italian plants. This potential reduction is part of a broader restructuring program aimed at resizing its global cost base.
The proposed layoffs are a response to the sustained downturn in the company's key automotive and industrial markets, which have experienced weaker demand and elevated inventories. This initiative is designed to enhance future operating efficiencies and gross margins.
The restructuring program includes accelerating the transition to more efficient 300mm silicon wafer fabs and 200mm silicon carbide facilities, which is expected to yield significant annual cost savings by 2027.
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