Does ST actually have a plan?

The company essentially stoked the flames a while back by saying that it was working on a new corporate strategy. That spurred rumours that it was considering splitting in two and selling its digital interests. Pushed to respond, ST issued a couple of contradictory 'no comment' type statements that did nothing to quell the speculation. Now in the public domain, the new strategy only really tells us one thing – that it is working on a way to get rid of its interest in ST-Ericsson. Who would have thought the new strategy would include such an obvious move – but little else? But ST employees should be worried about one part of the document. It's where ST says it will reduce its operational expenses dramatically. Currently around $900million, the target is less than $650m by the beginning of 2014. Redundancies – the 'go to' tool of executives when looking to cut costs – won't do the business. So what else does Carlo Bozotti have in mind? Who knows? Because Bozotti wouldn't tell. You have to believe that ST – and Bozotti in particular – has a plan. But on the basis of this strategy document, you have to wonder.