Telecom equipment maker Ericsson and semiconductor manufacturer STMicroelectronics, on Monday, announced plans to close down their four-year old joint venture — ST-Ericsson — a move that may lead to loss of about 1,600 jobs globally.
“The proposed key steps of agreement between the parent companies include each parent taking on parts of ST-Ericsson,” the companies said in a joint statement. It is expected to be completed during the third quarter of 2013, subject to regulatory approvals.
As a part of the process, Ericsson will absorb about 1,800 employees and contractors, with the largest concentrations in Sweden, Germany, India and China. ST will absorb about 950 employees, primarily in France and in Italy.
Further, the companies said, “ST-Ericsson will carry out restructuring of its current operations which could impact some 1,600 employees worldwide. Out of this, 500-700 are in Europe, 400 to 600 positions in Sweden and 50 to 80 positions in Germany.”
The statement did not disclose if jobs in India would be impacted.