Chipmaker, STMicroelectronics has announced plans to cut about 1,000 jobs in France as part of a global cost-cutting initiative. The move comes amid ongoing financial pressures and weakening demand in key sectors.
The layoffs account for more than one-third of the 2,800 global job reductions the company is targeting. It represents around nine per cent of its French workforce.
STMicroelectronics employs about 11,500 people in France and 12,700 in Italy, according to its 2024 annual report. While discussions with Italian labour representatives are still in progress, sources indicate that Rome is negotiating to limit job losses in Italy to a similar number as France. The company stated that it expects the job cuts in France to be voluntary and spread out gradually through 2027.
The exact locations of the French layoffs have not been detailed. However, STMicro has hinted at a reshuffle within its manufacturing operations, particularly in its facilities in Tours and Crolles. These sites are likely to see a shift away from legacy wafer production, with some activities potentially relocated to other international locations, including Singapore.
The job cuts come during a sustained slowdown in demand for semiconductors, especially in automotive and industrial markets—two of STMicro’s primary revenue sources. The company, jointly owned by the French and Italian governments through a 27.5 per cent stake, is looking to restructure its operations to remain competitive amid global market challenges.
Globally, STMicro employs around 50,000 people. As economic conditions remain uncertain, more changes are expected within its European operations. The company aims to balance cost-efficiency with social responsibility, although the decision has sparked concerns among workers in both France and Italy.
