Electronic chip maker STMicroelectronics and telecom gear maker Ericsson have agreed to close their around four year old joint venture ST-Ericsson, which could impact some 1,600 employees globally.
“In connection with the transfer of the majority of its workforce to the parent companies, ST-Ericsson will carry out restructuring of its current operations which could impact some 1,600 employees worldwide,” ST and Ericsson said in joint statement.
Out of these 1,600 jobs, around 500-700 jobs are in Europe, including 400-600 positions in Sweden and 50-80 positions in Germany.
The statement did not disclose if jobs in India would be impacted but said “after the split up it is proposed that Ericsson will assume approximately 1,800 employees and contractors, with the largest concentrations in Sweden, Germany, India and China.”
“It is also proposed that ST will assume approximately 950 employees, primarily in France and in Italy, to support ongoing business and new products development within ST,” the statement said.
As part of the split agreement, Ericsson will take on the design, development and sales of the lTE multimode thin modem products, including 2G, 3G and 4G multimode and ST will take on the existing ST-Ericsson products, other than lTE multimode thin modems, and related business as well as certain assembly and test facilities, it added.