- Plan aimed to achieve $120 million of annualized savings by end of 2012
- Includes global workforce review that may affect up to 500 employees worldwide
- Company also pushes out target for break-even based on current visibility
"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."
Also, while the company keeps its strong focus to improving financial performance, the company's path to profitability is expected to take longer, with the target break-even, based on current visibility, now planned later than the previously anticipated second quarter 2012.
The cost savings plan includes a global workforce review that may affect up to 500 employees worldwide. Specific country impact related to the plan and further details will be provided when employee representatives have been involved where required. Restructuring costs are estimated to be approximately $55 million, of which the majority is expected to be recorded during the second half of 2011.
The ST-Ericsson results reported in this press release do not reflect in their entirety the results of the Wireless Segment of STMicroelectronics, which include other activities that are not part of ST-Ericsson.
This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements.
저작권자 © Korea IT Times 무단전재 및 재배포 금지
