STMicroelectronics to Cut 5,000 Jobs in Global Restructuring Strategy

June 5, 2025 – Geneva, Switzerland — European semiconductor leader STMicroelectronics has announced a major restructuring initiative that will result in approximately 5,000 global job cuts over the next three years, as part of a strategic move to reduce operational costs and improve long-term competitiveness in the global semiconductor industry.

STMicroelectronics Restructuring Plan: What to Expect

CEO Jean-Marc Chery confirmed that the layoffs, including 2,800 positions already disclosed earlier in 2025, are part of a multi-year cost-saving program designed to generate hundreds of millions of euros in savings by 2027. Of the total workforce reduction, about 2,000 jobs will be lost through natural attrition, while the remaining roles will be eliminated through voluntary severance and early retirement programs.

Currently employing 50,000 workers worldwide, STMicroelectronics aims to streamline its operations and adapt to changing market dynamics, particularly as the global IC and chip packaging market faces prolonged headwinds.

“We are taking necessary steps to secure long-term operational resilience and cost-efficiency,” Chery said during a press briefing. “While discussions with local governments and unions are ongoing, we anticipate challenges—especially in countries like Italy.”

Tensions Rise in Italy Over Job Cuts

In Italy, where STMicro has several key manufacturing and IC design facilities, the job cuts have become politically sensitive. The Italian government has expressed frustration with the company’s leadership, amid a broader semiconductor industry slowdown and ongoing insider trading allegations against Chery—accusations that STMicro strongly denies.

The company is partially owned by Italy and France, holding a joint 27.5% stake through a public investment fund, further complicating negotiations.

France and Italy: Diverging Responses to the Layoffs

In France, the restructuring plan includes 1,000 voluntary redundancies, announced in April 2025. Negotiations with French stakeholders have largely progressed smoothly. However, in Italy, trade unions have fiercely opposed proposed cuts of 1,200 jobs at the Agrate Brianza facility in Lombardy. Union leaders have called the plan “unacceptable” and demanded immediate government intervention to halt the layoffs.

Market Outlook: STMicro Shares Surge Amid Mixed Sentiment

Despite internal tensions and stakeholder pushback, market analysts remain cautiously optimistic. On June 5, STMicroelectronics' stock surged by 11.1%, closing at €24.94, marking its strongest single-day rally since March 2020. Investors appear encouraged by Chery’s statement that “early signs of market recovery may emerge in 2025,” particularly in sectors like automotive ICs, 5G infrastructure, and AI chip design.

Conclusion

This announcement marks one of the largest job restructurings in the European semiconductor sector in recent years, with implications for IC packaging, design services, and chip manufacturing supply chains across the EU. While STMicroelectronics works to realign its operations with future market demands, the success of its cost-saving strategy will depend heavily on stakeholder cooperation and macroeconomic conditions.