ST-Ericsson said it will embark on a new cost-cutting program intended to save $115 million annually, a move that could result in the company cutting 600 jobs.
The chip maker, a joint venture between Ericsson and the Franco-Italian chipmaker STMicroelectronics, said the savings will come from cuts in operating expenses and spending, along with an "extensive" research and development efficiency program. This move follows restructuring the company announced in July.
The company, which provides silicon to the likes of Nokia, Samsung and Sony Ericsson, recently said it intends to break even this year with sales of between $750 million and $800 million. By the end of the third quarter, the company said it was mostly finished with a program to cut $250 million in operating expenses.
- see this release
- see this Reuters article
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