French-Italian chipmaker STMicroelectronics (ST) is considering cutting up to 6% of its workforce in France and Italy, potentially affecting 2,000 to 3,000 employees, according to a Bloomberg News report. The move is part of the company’s broader $300 million restructuring plan, as it shifts production to more advanced semiconductor facilities amid declining demand in key markets.
The planned cuts have raised concerns among labor unions. Pietro Occhiuto, head of the FIOM CGIL union in Brianza, Italy, stated that the company proposed an early retirement plan, with only one new position being created for every three employees who take early retirement. Rosy Scollo, a union leader in Catania, Italy, called for Industry Minister Adolfo Urso to intervene and provide assurances on job security, future investments, and hiring plans.
The French finance ministry and the Italian government have so far declined to comment on the matter.
STMicroelectronics, in which France and Italy jointly hold a 27.5% stake, currently employs 50,000 people worldwide. The company has been affected by a sustained downturn in demand from the automotive and industrial sectors, which form a key part of its business.
In May 2024, the Italian government approved a €2 billion grant for ST to build a new microchip plant in the country, aimed at creating 3,000 new jobs. However, the company has since announced a restructuring plan, shifting production away from older manufacturing sites and smaller wafer sizes in favor of advanced plants in Crolles, France, and Agrate, Italy.
