STMicroelectronics, Europe’s largest chipmaker, revealed a $366 million net loss in the fourth quarter of 2008. Suffering the same overblown inventory levels and deflated consumer demand as chipmakers across the globe, STMicro will cut 4, 500 jobs in order to reduce costs. The company posted a $20 million net profit in the fourth quarter of 2007.
“Fourth-quarter net revenues came in at the midpoint of our updated outlook and reflected the accelerated level of order push-outs and cancellations and decrease in demand as the quarter progressed,” said STMicro president and chief executive, Carlo Bozotti, in the statement. “All product areas were negatively affected, in particular automotive, wireless and computer peripherals.”
Bozotti also said that the mass layoffs will be part of a strategy to cut 2009 costs by $700 million.