Latest news with #Jean-MarcChery
Time of India
7 days ago
- Business
- Time of India
Chipmaker STMicro makes first loss in over a decade, hit by restructuring costs
By Nathan Vifflin AMSTERDAM: STMicroelectronics reported a second-quarter loss on Thursday, its first in more than a decade, underperforming market expectations as it was hit by restructuring costs . The company's shares fell 11% in early trade, on track for their worst day since July last year. The Franco-Italian chipmaker, which makes power chips for Tesla 's drivetrains and eSim modules for Apple's iPhones, posted a loss of $133 million for the quarter, missing the average $56.2 million profit analysts expected in an LSEG poll. The operating loss included a $190 million impairment, restructuring charges and other costs, STMicro said in a statement. Without the restructuring and impairment costs, profits would have reached $57 million, the company added. STMicro's heavy reliance on in-house manufacturing, representing about 80% of sales, has burdened it with underused factories and high staff costs when the market slows, unlike rivals Infineon and NXP that use more contract manufacturing, analysts say. Chipmakers exposed to the struggling automotive, industrial, and consumer chip markets such as STMicro, Texas Instruments , or NXP have faced a sales slump, hit by low demand, high inventories, and geopolitical disruptions . STMicro, one of Europe's largest chipmakers, unveiled a cost-cutting plan last year to restructure its manufacturing facilities and save hundreds of millions of dollars by 2027. The plans, which included cutting 5,000 jobs in France and Italy over the next three years, started a spat between the French and Italian governments, who jointly own a stake of 27.5%in the firm. STMicro's Chief Executive Jean-Marc Chery defended his plan after the Italian government sought to oust him and accused the management of insider trading. STMicro has not provided guidance for the full year of 2025. In June, the company said it saw the early signs of an upcycle, or a period of increased market demand, which would allow it to achieve its second-quarter revenue goal of $2.71 billion. Revenue rose to $2.76 billion from $2.52 billion in the second quarter, ahead of that target. STMicro said it is now expecting revenue in the third-quarter to reach $3.17 billion, ahead of analysts expectations of $3.10 billion.
Yahoo
05-06-2025
- Automotive
- Yahoo
STMicro Will Eliminate 5,000 Jobs in the Next Three Years, Says CEO
CEO Jean-Marc Chery revealed at a BNP Paribas event in Paris that STMicroelectronics N.V. (NYSE:STM) will lose 5,000 workers over the next three years, including 2,800 job layoffs that have already been publicized. A worker assembling the inner circuitry of a semiconductor product. It is anticipated that 2,000 of the total will depart naturally, with voluntary departures making up additional reductions. Chery pointed out that continuing talks with local authorities were the reason for implementation delays, especially in Italy. The French and Italian governments jointly share a 27.5% interest in STMicroelectronics N.V. (NYSE:STM), which employs 50,000 people worldwide. Its cost-cutting initiative, which was started in late 2024, is to reduce the workforce through early retirement and attrition in order to save hundreds of millions by 2027. In April, the business announced that 1,000 of the 2,800 scheduled layoffs would be voluntary in France. According to reports, the Italian government has opposed further cuts and has pushed to limit them to 1,000. Market declines and CEO-targeted insider trading accusations, which the company refutes, are additional factors putting pressure on the business. While we acknowledge the potential of STM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None.
Straits Times
05-06-2025
- Business
- Straits Times
Chipmaker STMicro to cut 5,000 jobs in next 3 years, says CEO
STMicroelectronics expects 5,000 staff to leave the company in the next three years, including 2,800 job cuts announced earlier in 2025. PHOTO: REUTERS Chipmaker STMicro to cut 5,000 jobs in next 3 years, says CEO Amsterdam - STMicroelectronics expects 5,000 staff to leave the company in the next three years, including 2,800 job cuts announced earlier in 2025, its chief executive said on June 4. Around 2,000 employees will leave the Franco-Italian chipmaker due to attrition, bringing the total count with voluntary departures to 5,000, CEO Jean-Marc Chery said. He added that discussions with stakeholders and authorities over implementation of the cost-cutting programme were on track. In an apparent reference to Italy, he said: 'I do think that one country specifically is harder. And most likely, okay, could delay a little bit our speed of implementation', Mr Chery said. Over the last months, Italy's government has expressed discontent with the firms' chief executive, as STMicro faces a sustained downturn in its key markets, and accused him of insider trading. The company denies those allegations. STMicro, in which the Italian and French governments own a combined 27.5 per cent share through a holding company, employs 50,000 people worldwide. In November 2024, STMicroelectronics detailed its cost cutting programme to save hundreds of millions by 2027, with workforce reductions from attrition and early retirement. In April, STMicro said voluntary departures would cut 1,000 jobs in France, out of 2,800 planned outside of attrition, while talks with Italy were ongoing. Reuters had reported in the same month Italy pressed to limit the job cuts to 1,000. Italian unions on June 4 said the 1,200 redundancies the company announced at the Agrate plant in the northern region of Lombardy were 'unacceptable' and asked for an urgent meeting with the Italian government to discuss the situation. Mr Chery also said on June 4 he saw signs of a market upturn this year. STMicro shares closed up 11.1 per cent at 24.94 euros per share, in their biggest one-day gain since late March 2020. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
04-06-2025
- Business
- Business Times
STMicro to cut 5,000 jobs in next 3 years, says CEO
[AMSTERDAM] STMicroelectronics expects 5,000 staff to leave the company in the next three years, including 2,800 job cuts announced earlier this year, its chief executive said on Wednesday (Jun 4). Around 2,000 employees will leave the Franco-Italian chipmaker due to attrition, bringing the total count with voluntary departures to 5,000, Jean-Marc Chery said at an event in Paris hosted by BNP Paribas. The CEO added that discussions with stakeholders and authorities over implementation of the cost-cutting programme were on track. In an apparent reference to Italy, he said: 'I do think that one country specifically is harder. And most likely, okay, could delay a little bit our speed of implementation', Chery said. Over the last months, Italy's government has expressed discontent with the firms' chief executive, as STMicro faces a sustained downturn in its key markets, and accused him of insider trading. The company denies those allegations. STMicro, in which the Italian and French governments own a combined 27.5 per cent share through a holding company, employs 50,000 people worldwide. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In November last year, STMicroelectronics detailed its cost cutting programme to save hundreds of millions by 2027, with workforce reductions from attrition and early retirement. In April, STMicroelectronics said voluntary departures would cut 1,000 jobs in France, out of 2,800 planned outside of attrition, while talks with Italy were ongoing. Reuters had reported in the same month Italy pressed to limit the job cuts to 1,000. Italian unions on Wednesday said the 1,200 redundancies the company announced at the Agrate plant in the northern region of Lombardy were 'unacceptable' and asked for an urgent meeting with the Italian government to discuss the situation. Chery also said on Wednesday he saw signs of a market upturn this year. Shares closed up 11.1 per cent at 24.94 euros per share, in their biggest one-day gain since late March 2020. REUTERS
Reuters
04-06-2025
- Business
- Reuters
STMicro to cut 5,000 jobs in next 3 years -CEO
June 4 (Reuters) - STMicroelectronics ( opens new tab expects 5,000 staff to leave the company in the next three years, including 2,800 job cuts announced earlier this year, its chief executive said on Wednesday. Around 2,000 employees will leave the the Franco-Italian chipmaker due to attrition, bringing the total count with voluntary departures to 5,000, Jean-Marc Chery said at an event in Paris hosted by BNP Paribas. "At the end, it's 5,000 people that will leave the company," he said. Chery said that discussions with stakeholders and authorities over implementation of its cost cutting program were on track. In an apparent reference to Italy, he said: "I do think that one country specifically is harder. And most likely, okay, could delay a little bit our speed of implementation", Chery said. Over the last months, Italy's government has expressed discontent with the firms' chief executive, as STMicro faces a sustained downturn in its key markets, and accused him of insider trading. The company denies those allegations. STMicro, in which the Italian and French governments own a combined 27.5% share through a holding company, employs 50,000 people worldwide. In November last year, STMicroelectronics detailed its cost cutting program to save hundreds of millions by 2027, with workforce reductions from attrition and early retirement. In April, STMicroelectronics said voluntary departures would cut 1,000 jobs in France, out of 2.800 planned outside of attrition, while talks with Italy were ongoing. Reuters had reported in the same month Italy pressed to limit the job cuts to 1,000. During the same event, the CEO of STMicroelectronics said he saw signs of a market upturn this year.
