STMicroelectronics Set to Trim 1,000 Jobs Globally, With Focus on France
STMicroelectronics is planning to reduce its workforce in France by approximately 1000 employees.
Tech giant STMicroelectronics has disclosed plans to axe around 1,000 jobs in France, constituting a slice of its worldwide workforce of 2,800. The news surfaced in a statement addressed to "Here Touraine" (formerly France Bleu) during a council meeting.
The company assures these redundancies will be voluntary, and it refrains from specifying which sites will be targeted. By the end of 2027, these departures, either internal or external, could materialize, assures the management in a statement to "Here Touraine."
Global Presence and Impact
STMicroelectronics employs roughly 50,000 people worldwide, with 11,500 based in France. Among these, 7,500 work at sites in Grenoble and Crolles, Isère. They also have workforces in Tours (Val-de-Loire), Rousset (Aix-en-Provence, Bouches-du-Rhône), Saint-Genis (Ain, near Switzerland), Sophia-Antipolis (Alpes-Maritimes), and Rennes (Ille-et-Vilaine), as reported by "Here Touraine."
It is uncertain whether the local workforce at Malta's Kirkop facility will face repercussions from this overhaul, as STMicroelectronics plans to boost automation in this location as part of its modernization efforts [5].
Union's Worry and Criticism
In April, STMicroelectronics revealed its intention to implement a staff reduction plan due to poor 2024 results, particularly impacted by the automotive crisis. At the time, it alluded to an "industrial reshaping."
One union, CFDT, has voiced concerns and decried the "insufficient solidity in the management of this process" by the French management. The union asserts that the measures meant to maintain the employability of employees who wish to remain within the company are inadequate, and they fear that the management seeks employees' departures over measures that would foster training and professional retraining towards burgeoning professions and critical projects [6].
Enrichment Data:
In summary, STMicroelectronics is planning to reduce its workforce by up to 2,800 employees, with a significant portion being from its French locations. Though voluntary departures, the company aims to implement this change by the end of 2027. Concerns arise from the perceived insufficient focus on employee retraining and development, and it remains unclear which sites will be impacted beyond France. There is an ongoing desire to modernize facilities and boost automation across the manufacturing network, with a focus on advanced technologies like AI and automation [1][2][3][4]. Annual cost savings in the high triple-digit million dollar range are anticipated by the end of 2027 [1][3].
- Despite the tech giant STMicroelectronics planning to trim 1,000 jobs globally, focusing notably on France, it employs approximately 50,000 people worldwide.
- Within France, STMicroelectronics has over 11,500 employees, with large workforces in cities such as Grenoble, Crolles, Tours (in Val-de-Loire), Rousset, Saint-Genis, Sophia-Antipolis, and Rennes.
- The company aims to implement these redundancies by the end of 2027, while ensuring they are voluntary and not specifying which sites will be targeted.
- However, one union, CFDT, has expressed concern about the insufficient focus on employee retraining and development, fearing that the management seeks employees' departures over measures that would foster training and professional retraining towards burgeoning professions and critical projects.
- The move toward voluntary departures is part of STMicroelectronics' ongoing desire to modernize facilities and boost automation across the manufacturing network, with a focus on advanced technologies like AI and automation, with the expectation of achieving annual cost savings in the high triple-digit million dollar range by the end of 2027.
