STMicroelectronics (NYSE: STM) Job Cuts Announcement
At a recent BNP Paribas event in Paris, CEO Jean-Marc Chery announced that STMicroelectronics N.V. (NYSE: STM) will reduce its workforce by 5,000 over the next three years. This includes 2,800 job layoffs that have already been made public.
Of the total job reductions, it is expected that 2,000 positions will be vacated naturally, with voluntary departures contributing to the overall decrease. Chery noted that ongoing discussions with local authorities, particularly in Italy, have contributed to delays in implementing these cuts.
The French and Italian governments jointly hold a 27.5% stake in STMicroelectronics, which employs approximately 50,000 individuals globally. The company initiated its cost-cutting program in late 2024, aiming to save hundreds of millions by 2027 through early retirement and attrition. In April, it was reported that 1,000 of the 2,800 layoffs would be voluntary in France.
Complicating matters, the Italian government has expressed opposition to further reductions, advocating for limits on cuts to just 1,000 positions. Additionally, market downturns and allegations of insider trading against the CEO, which the company categorically denies, are also impacting STMicroelectronics.
While we recognize STM's potential as an investment, we believe that certain AI stocks may offer more significant returns with lower risk. For insights into a particularly undervalued AI stock that benefits from recent tariffs and onshoring trends, check out our free report on the best short-term AI stock.