With the Stock Down Almost 50% YTD STMicroelectronics (NYSE:STM) 6% job cuts

Franco-Italian chipmaker STMicroelectronics NV (NYSE:STM) is contemplating a workforce reduction of approximately 6%, Bloomberg News reported, citing individuals with knowledge of the matter. The company is facing an extended period of decreased demand in the industrial and automotive sectors.

STMicroelectronics’ revenue drops, profit sinks 63%, and weak Q1 guidance triggers stock sell-off and analyst downgrades.

The potential job cuts, which could be publicized as early as next month, might affect between 2,000 and 3,000 employees. These reductions are expected to impact the company’s operations in both Italy and France. However, the final decision and the extent of the cuts are still under consideration, added the sources, who requested anonymity due to the confidential nature of the information.

The Italian government, which along with France owns a 27.5% stake in STMicroelectronics, is looking for ways to lessen the restructuring’s impact on the Italian workforce.

In response to these reports, a spokesperson for the company stated, “In the coming weeks, we will start engaging a constructive dialog with employee representatives around end of career support programs, built on a voluntary basis, including early retirement.” The spokesperson declined to provide further comments on the matter.