STMicroelectronics Pledges No Layoffs in Italy

According to foreign media reports, on September 15, Italian Industry Minister Adolfo Urso stated that chip manufacturer STMicroelectronics (referred to as "STMicro") has committed not to lay off employees in Italy. Previously, the Italian government had strongly criticized the CEO of STMicroelectronics, and this commitment aims to quell the controversy.

Image Source: STMicroelectronics

Adolfo Urso held talks in Rome, the capital of Italy, with representatives from STMicroelectronics and its unions. The main goal of the meeting was to prevent mass layoffs at the company's plant in Agrate, northern Italy. Currently, the governments of Italy and France together hold 27.5% of STMicroelectronics' shares.

Adolfo Urso stated in a statement: "We welcome STMicroelectronics' announcement to abandon layoffs at the Agrate plant and submit an industrial revitalization plan for the factory. This is a step forward in the right direction."

STMicroelectronics separately stated that, as part of a mutually agreed voluntary departure plan, the company will no longer proceed with layoffs. STMicroelectronics also indicated that, depending on market developments, its Agrate plant is expected to undergo expansion after 2027 upon completion of a feasibility study; at the same time, the company clarified that there are currently no plans for structural adjustments at its other plants in Italy.

In April of this year, STMicroelectronics announced that, in addition to natural attrition, the company plans to reduce 2,800 jobs through voluntary departures, with 1,000 jobs being cut in the French region. At that time, the company was still in negotiations with the Italian government. In the same month, Reuters reported that the Italian government was pressuring the company to limit the number of job cuts in the country to no more than 1,000.

In June of this year, Italian unions stated that STMicroelectronics plans to lay off 1,200 employees at the Agrate plant and requested an emergency meeting with the Italian government to discuss the situation.

Sources previously revealed that the Italian government had attempted to persuade the French government to support its plan to replace STMicroelectronics CEO Jean-Marc Chery. However, an Italian source stated on September 15 that in recent weeks, the parties involved have been working to resolve their differences.