EMCC European Monitoring Centre on Change



Geographic Location

Country: World
Location of affected unit(s): Phoenix and Carrollton (US); Casablanca (Morocco)


Sector: Manufacturing
Manufacture of computer, electronic and optical products
26 - Manufacture of computer, electronic and optical products
Number Employed: 50000

Employment Effects

Announcement Date: 11-07-2007
Planned Job Reductions min: 4000
Planned Job Reductions max: 4000
Type of Restructuring: Offshoring/Delocalisation
Employment Effect Start: 12-07-2007
Foreseen End Date: 12-07-2010
Direct Dismissals: 4000

Additional Information

STMicroelectronics is one of the world's largest semiconductor companies and is market leader in fields such as camera modules for mobile phones and semiconductors for set-top boxes and power management devices. The group has around 50,000 employees, 16 advanced research and development units, 39 design and application centres, 17 main manufacturing sites and 78 sales offices in 36 countries. In 2005, the company carried out a broad reorganisation plan with the consequent loss of around 3,000 jobs worldwide. In July 2007, the Italian-French company announced a new reorganisation plan that envisages the closure of three plants. Two of these plants are in Phoenix and Carrollton in the United States, and one is in Casablanca in Morocco. The closure of these plants is expected to occur in the next two to three years, and around 4,000 jobs will be lost. The firm has taken this decision in order to reduce its operative costs, and will relocate production in countries with lower labour and transfer costs. The company will also provide economic incentives for voluntary redundancy and will offer different income support and retraining measures to support the redundant personnel.