STMicroelectronics is contemplating a workforce reduction of up to 6%, which translates to around 3,000 employees in France and Italy, as part of a restructuring initiative.

This potential layoff plan comes amidst a broader $300 million cost-cutting strategy due to a significant downturn in key markets, particularly in the automotive and industrial sectors.

The French and Italian governments, which collectively own a 27.5% stake in STMicroelectronics, are actively seeking to mitigate the impact of these layoffs on the local workforce.

During the company's fourth-quarter earnings call, CEO Jean-Marc Chery announced plans to engage in discussions with unions regarding voluntary headcount reductions.

In light of the potential job cuts, Rosy Scollo, head of the Fiom Cgil union in Catania, has called for a meeting with the Industry Minister to discuss job security and future investments.

STMicroelectronics reported a revenue of $13 billion in 2024, marking a 23.2% decrease from the previous year, and labeled 2024 as one of the worst years for the industry in decades.

While Bloomberg News reported on the potential job cuts based on anonymous sources, STMicroelectronics has yet to confirm the specific figures.

The company employs over 50,000 individuals globally and specializes in semiconductor technologies, operating advanced manufacturing facilities in locations such as Crolles, France, and Agrate, Italy.

The semiconductor industry, including STMicroelectronics, has faced a significant slump, with the company's stock price falling by 45% over the past year.

As of January 31, 2025, STMicroelectronics' stock was trading at $22.87, reflecting a slight increase, while analysts have set an average price target of $30.5, suggesting potential upside.

The restructuring plans, first revealed in November 2024, aim to shift production from older plants to more advanced facilities, responding to the declining demand in key markets.

The company is also exploring an early retirement plan, proposing that for every three employees who retire early, only one position would be reopened.