ST-NXP Wireless has brought forward plans to reorganise the merged business which will result in it cutting 500 jobs from its global workforce.
What the company called “substantial changes in the global markets and in the needs of its customers” have prompted it to bring forward plans to rationalise the merged business which
was formed in April from the wireless chip businesses of STMicroelectronics and NXP.
“With today’s market outlook appearing quite different than it did just a few months ago, ST-NXP Wireless is taking necessary action to adapt its R&D resources and cost structure to the new business conditions in the industry,” said
ST-NXP Wireless.
The company announced a plan to reduce its global workforce by about 500 people, including subcontractors, from the current total of more than 7500 people.
The hope is to achieve the $250m of cost savings anticipated at the time of the merger’s announcement.
Restructuring charges are anticipated in the range of $50m, mostly accrued in ST-NXP Wireless and ST’s consolidated balance sheet at the end of September 2008.