The chips are down

Following a net loss of $366million, STMicroelectronics has issued a statement revealing its plans to shed 4500 jobs.

ST has over 45,000 employees and intends to reduce costs by $700m in 2009, with further plans include limiting spending budgets to $500m, cutting 2008’s spending by 50%. The company was hit worst by the automotive sector with sales down by 27% from a year earlier. President and ceo Carlo Bozotti, pictured, said: “All product areas were negatively affected, in particular automotive, wireless and computer peripherals. Gross margin was somewhat lower than the mid point of our revised outlook mostly due to our final product mix being below our expectations – in particular in wireless.” Looking forward, the chip maker expects sales of $1.5 to $1.85billion for the first quarter.