LONDON – Mobile chip company ST-Ericsson is set to close R&D sites as part of the latest round of restructuring, according to CEO Gilles Delfassy. A site in Basingstoke, England, has already been earmarked for closure with a loss of up to 139 jobs, according to a local report.
ST-Ericsson announced a net loss of $221 million on sales revenue of $385 million in the second quarter of 2011 and on telephone conference with analysts to discuss the results Delfassy was asked whether closure of R&D sites would happen.
"Yes, we have a lot of R&D sites; not always easy to handle; not the most inexpensive solution," said Delfassy on the conference call and webcast. "Yes, you can assume our direction is to concentrate on fewer, bigger R&D sites. That's a safe assumption," he concluded.
ST-Ericsson is 50:50 joint venture between STMicroelectronics NV and Ericsson AB and also includes employees from NXP's wireless business that were wrapped up into ST-NXP prior to the formation of ST-Ericsson in February 2009. As such, it has numerous legacy sites in France, Switzerland, the United Kingdom and China and the far-east.
ST-Ericsson sites listed at the company's website include: Lund in Sweden; Nurnberg in Germany; Crolles, Le Mans, Rennes and Sophia Antipolis in France; Beijing, Shanghai, Shenzhen and Hong Kong in China; Taipei in Taiwan; and Tokyo and Yokohama in Japan.
ST-Ericsson also has development staff in Bristol, Basingstoke and in Daventry, England.
In June, shortly after ST-Ericsson announced a restructuring plan that would affect 500 jobs, it was reported by the Basingstoke Gazette that the company had decided to close its base in Basingstoke with a loss of up to 139 jobs.
ST-Ericsson's two other U.K. offices, in Bristol and Daventry, will not be affected by the restructuring, the Basingstoke Gazette said. The decision to close Basingstoke was based on the projects being worked on at the various sites, the Basingstoke Gazette quoted an ST-Ericsson spokesman as saying.
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