ST-Ericsson announces global workforce review
Geneva, March 18, 2013 - ST-Ericsson, a joint venture (JV) of STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC), today announced a plan for a global workforce review, following the announcement made today by Ericsson and STMicroelectronics about the future of the joint venture.
The proposed key steps of agreement between the parent companies include each parent taking on parts of ST-Ericsson. It is proposed that Ericsson will assume approximately 1,800 employees and contractors, with the largest concentrations in Sweden, Germany, India and China. It is also proposed that ST will assume approximately 950 employees, primarily in France and in Italy, to support ongoing business and new products development within ST.
In addition, ST-Ericsson is pursuing external options for the future of the connectivity business, which employs around 200 employees worldwide.
In connection with the transfer of the majority of its workforce to the parent companies, ST-Ericsson will carry out restructuring of its current operations which could impact some 1,600 employees worldwide, out of which in a range of 500-700 are in Europe, including 400 to 600 positions in Sweden and 50 to 80 positions in Germany.
ST-Ericsson - with the support of both parent companies - will honor all obligations to employees, including those related to restructuring.
The proposed changes are subject to negotiations with work councils and employee representatives as required.
ST-Ericsson is a world leader in developing and delivering a complete portfolio of innovative mobile platforms and cutting-edge wireless semiconductor solutions across the broad spectrum of mobile technologies. ST-Ericsson was established as a 50/50 joint venture by STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC) in February 2009, with headquarters in Geneva, Switzerland.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Ericsson Corporate Communications
Phone: +46 10 719 69 92
Ericsson Investor Relations
Phone: +46 10 719 00 00
STMicroelectronics Investor Relations
Tait Sorensen, Phoenix AZ, US
Phone: +1 602 485 2064
Celine Berthier, Geneva, Switzerland
Phone: +41 22 929 5812
STMicroelectronics Media Relations
Nelly Dimey, Paris, France
Phone: +33 1 58 077 785
This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements. For a detailed description of risk factors see STMicroelectronics' (NYSE:STM) and Ericsson's (NASDAQ:ERIC) filings with the US Securities and Exchange Commission, particularly each company's latest published Annual Report on Form 20-F.