Feeds

Falling chip sales cost more jobs

One in ten go at STMicro

Build a business case: developing custom apps

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. ®

The essential guide to IT transformation

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
End of buttons? Apple looks to patent animating iPhone sidewalls
Filing suggests handset with display strips
One step closer to ROBOT BUTLERS: Dyson flashes vid of VACUUM SUCKER bot
Latest cleaner available for world+dog in September
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
Tim Cook in Applerexia fears: New MacBook THINNER THAN EVER
'Supply chain sources' give up the goss on new iLappy
Reg man looks through a Glass, darkly: Google's toy ploy or killer tech specs?
Tip: Put the shades on and you'll look less of a spanner
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.