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ST-Ericsson shuts down R&D sites

Posted: 29 Jul 2011 ?? ?Print Version ?Bookmark and Share

Keywords:restructuring? R&D? mobile chip?

ST-Ericsson CEO, Gilles Delfassy, has announced that it plans to close some of its R&D sites as part of their restructuring initiatives. Just last week, the mobile chip company announced its 2Q11 financial results. ST-Ericsson made a net loss of $221 million on sales revenue of $385 million.

Grim future for ST每Ericsson
The rest of 2011 will be bumpy for ST-Ericsson and this will probably continue throughout 2012. The rate at which the company is generating losses begs the question how long STMicroelectronics and Ericsson can afford to wait for things to improve.
Read more about ST-Ericsson's 2Q11 financial report.

When asked whether the company will close some R&D sites, Delfassy answered, "Yes, we have a lot of R&D sites; not always easy to handle; not the most inexpensive solution. Yes, you can assume our direction is to concentrate on fewer, bigger R&D sites. That's a safe assumption."

ST-Ericsson is a 50:50 joint venture between STMicroelectronics NV and Ericsson AB. It also includes employees from NXP's wireless business that were wrapped up into ST-NXP prior to the formation of ST-Ericsson in February 2009. As such, it has numerous legacy sites in France, Switzerland, the United Kingdom and China and the far-east.

ST-Ericsson sites listed at the company's website include: Lund in Sweden; Nurnberg in Germany; Crolles, Le Mans, Rennes and Sophia Antipolis in France; Beijing, Shanghai, Shenzhen and Hong Kong in China; Taipei in Taiwan; and Tokyo and Yokohama in Japan.

The company also has development staff in Bristol, Basingstoke and in Daventry, England.

ST-Ericsson's cost savings affect 500 jobs
ST-Ericsson hopes to realize huge savings by restructuring the company and cutting its costs. Learn more about ST-Ericsson's cost cutting plans.

In June, shortly after ST每Ericsson announced a restructuring plan that would affect 500 jobs, it was reported by the Basingstoke Gazette that the company had decided to close its base in Basingstoke, losing 139 jobs in the process.

ST每Ericsson's two other U.K. offices, in Bristol and Daventry, will not be affected by the restructuring, the Basingstoke Gazette said. The local newspaper quoted an ST-Ericsson spokesman saying that the decision to close Basingstoke was based on the projects being worked on at the various sites.

- Peter Clarke
??EE Times

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