Citing recent changes in the business environment and reduced demand for legacy products at certain customers, ST-Ericsson announced a restructuring aimed at achieving about $120 million of annualized savings by the end of 2012. The plan calls for a global workforce review that may affect up to 500 employees worldwide and restructuring costs of $55 million.
The company also pushed out the predicted date to return to profitability, saying the target break-even, based on current visibility, is now seen to be later than the previously anticipated second quarter 2012.
“These actions while necessary to strengthen the financial position of the company, will not compromise the execution of our new products and delivery to our customers,” said Gilles Delfassy, president and CEO of ST-Ericsson. “We continue to gain traction on our new product portfolio and remain steadfastly committed to leadership in the smartphone and tablet markets.”http://www.stericsson.com
