The
unprofitable mobile technology venture between Ericsson and
STMicroelectronics, ST-Ericsson, said it would axe 1,600 jobs after
splitting the operation.
ST-Ericsson said
restructuring "could impact some 1,600 employees", out of which 500-700
were in Europe, including 400 to 600 positions in Sweden and 50 to 80
positions in Germany.
Ericsson will book a 500
million kronor (59.9 million euros, $77.8 million) restructuring charge
in the fourth quarter this year, after announcing an eight billion
kronor write-off for ST-Ericsson in the fourth quarter of 2012.
STMicroelectronics
expected to incur a $350-4450 million (between 270 million and 347
million euros) cost this year for the split.
ST-Ericsson last year had a headcount of 5,000, mostly in Sweden, Germany, India and China.
The
Swedish company will take over 1,800 staff, leaving the Franco-Italian
company with a workforce of 950 for remaining activities.
The
maker of mobile platforms and semiconductors has never been profitable
since being founded in early 2009. In the fourth quarter of last year,
it made a net loss of USD 133 million.
Carlo Ferro will replace Didier Lamouche as chief executive to oversee the unwinding of the venture, the company said.
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