The reduction could affect up to 2000 to 3000 people out of ST’s 50,000 workforce. The number of cuts is said to be under discussion.
On Thursday, CEO Jean-March Chery said the company is looking to shrink its cost base and is planning an early retirement programme.
It is said to affect sites in Italy and France.
It comes in the wake of a forecast 28% reduction in Q1 revenues y-o-y and prolonged weakness in the industrial and automotive markets.
The Italian government is reported to be seeking to limit the impact of the restructuring on the Italian workforce.