Feeds

Falling chip sales cost more jobs

One in ten go at STMicro

Reducing security risks from open source software

STMicro is laying off 4,500 people - one in ten of its workforce - and won't provide revenue guidance for next year until the market is clearer.

The company will cut $700m from expenses in 2009 by slashing jobs and "resizing" manufacturing operations. STMicro makes chips for industrial applications, set-top boxes and cars.

STMicro will cut 50 per cent from its capital expenditure, down to $500m.

The chipmaker said global uncertainty and the recession made it difficult to forecast demand: "Consequently, the Company will only provide approximate revenue and gross margin internal planning targets with respect to the first quarter of 2009.

"When visibility on market conditions improve, the Company will reconsider providing quantitative guidance similar to past practices."

The company brought in $10bn in 2007 but is predicting, for internal purposes, revenues for the next quarter to be between $1.5bn and $1.85bn.

STM will continue to work on its joint venture Ericsson Mobile Platforms. It will run its fabs at 50 per cent capacity in order to cut inventory levels.

Full statement here. ®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Seventh-gen SPARC silicon will accelerate Oracle databases
Uncle Larry's mutually-optimised stack to become clearer in August
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.