STMicro Reports Loss, Laying Off 4,500

Semiconductor maker STMicroelectronics has reported a $366 million net loss for the last quarter and says it will be laying off up to 4,500 people.

After a profit of $20 million in the fourth quarter of 2007, European semiconductor maker STMicroelectronics has reported a massive loss for the same period this year, a $366 million net loss, according to ZDNet. As part of a move to cut costs, the company is set to lay off up to 4,500 staff.

In a statement, STMicro president and chief executive, Carlo Bozotti said:

"Fourth-quarter net revenues came in at the mid-point of our updated outlook and reflected the accelerated level of order push-outs and cancellations and decrease in demand as the quarter progressed. All product areas were negatively affected, in particular automotive, wireless and computer peripherals."

The company hopes that shedding staff, along with other measures, will reduce costs by $700 million this year.