st-Ericsson to cut costs or lay off 500 people

Sina Science and technology news Beijing time June 23, the Italian-French semiconductor and Ericsson joint venture St-ericsson announced today, as part of the cost-cutting plan, the company is expected to lay off 500 people. St-ericsson announced a cost-cutting plan in Thursday, which plans to cut costs by $120 million a year by the end of 2012, a move that could result in the company laying off 500 people.　　The cost-cutting plan, St-ericsson said, was mainly related to the current downturn in the business environment and the decline in market demand.　　St-ericsson CEO Giles Difassi (Gilles Delfassy) said the cost-cutting plan aims to improve the company's financial position without affecting the development and listing of new products. St-ericsson also pointed out that the company's balance of payments date will be later than expected in the second quarter of 2012. Last year, St-ericsson revenue of 2.3 billion U.S. dollars, since its inception in February 2009, St-ericsson's business is basically in the downward trend. Some insiders said T-ericsson future prospects are not optimistic. (Li Ming)