ST-Ericsson will come to an end with today's announcment of what STMicroelectronics and Ericsson are calling a "global workforce review." The plan is aimed at returning the joint venture's parts and workforce to its parent companies and result will in approximately 1600
The move comes after STMicroelectronics had said back in December of 2012 that it was working to exit the joint venture with Ericsson, saying it would execute its plans sometime in the the third quarter of 2013.
As part of the plan, 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.
In addition, ST-Ericsson is pursuing external options for the future of the connectivity business, which employs around 200 employees worldwide.
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, out of which in a range of 500-700 are in Europe, including 400 to 600 positions in Sweden and 50 to 80 positions in Germany.
ST-Ericsson was established as a 50/50 joint venture by STMicroelectronics and Ericsson in February 2009, with headquarters in Geneva, Switzerland.
Shares of STMicroelectronics venture were up over 3 percent to $7.88 in early trading, while shares of Ericsson where down 2.5 percent to $12.94.