Feeds

Falling chip sales cost more jobs

One in ten go at STMicro

The essential guide to IT transformation

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. ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
Super Cali signs a kill-switch, campaigners say it's atrocious
Remote-death button bad news for crooks, protesters – and great news for hackers?
AMD unveils 'single purpose' graphics card for PC gamers and NO ONE else
Chip maker claims the Radeon R9 285 is 'best in its class'
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Will It Blend? Maybe. BlackBerry’s secret comeback weapon
The Desktop PIM buddy: A 1990s idea finally done right?
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?