French-Italian semiconductor manufacturer STMicroelectronics is contemplating reducing its workforce by up to 6% or 3,000 employees at its French and Italian facilities as part of a restructuring initiative, as per Bloomberg News, quoting anonymous sources. While a company spokesperson could not verify the numbers, they referred to statements made by CEO Jean-Marc Chery during the fourth-quarter earnings, indicating that negotiations with unions for voluntary staff reductions are forthcoming within a $300 million cost-cutting endeavor.
Pietro Occhiuto, representing the FIOM CGIL union in Brianza, where STM operates a plant, informed Reuters that the company has proposed an early retirement scheme to the European Works Council, intending to refill one position for every three individuals opting for early retirement.
Rosy Scollo, leading the Fiom Cgil union in Catania, expressed to Reuters the union's desire for Industry Minister Urso to convene a meeting, provide assurances regarding job retention, and confirm investments and new hires at STMicroelectronics.
An Italian Industry Minister Adolfo Urso spokesperson declined to comment, as did the French finance ministry.
In May, Rome granted 2 billion euros to construct a microchip plant in Italy, with potential to generate 3,000 new positions at STM.
With the French and Italian governments collectively holding a 27.5% stake, STMicroelectronics, employing 50,000 individuals globally, is experiencing challenges in its primary markets of automotive and industrial sectors.
Previously, ST unveiled restructuring plans to transition production from older plants and smaller wafer sizes towards more advanced facilities in Crolles, France, and Agrate, Italy.