STMicroelectronics to shed 1400 jobs as turns off TV decoder business

2/11/2016 6:41:48 AM

(MENAFN- The Peninsula)

Paris: Franco-Italian semiconductor manufacturer STMicroelectronics said Wednesday it was halting development of new TV set-top decoders a step which will lead to the elimination of around 1400 jobs.

"This difficult decision is consistent with our strategy to only participate in sustainable businesses and is due to the significant losses posted by our set-top box business over the past years in an increasingly challenging market" chief executive Carlo Bozotti said in a statement.

About 600 staff in the division would be redeployed to digital automotive and other units.

Some 430 jobs in France are expected to be eliminated through voluntary departures.

At the same time the company said its net profit fell 20 percent last year to $104 million (96 million euros) while sales slid seven percent to $6.9 billion.

The company's shares jumped more than six percent in early trading on the Paris stock exchange while the CAC-40 index was down 0.4 percent overall.

AFP

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