Apple And Tesla Supplier STMicroelectronics Plans Up to 3,000 Job Cuts in Italy and France

STMicroelectronics NV STM is considering downsizing its workforce in Italy and France by up to 6%, implying 2,000-3,000 workers.

On Thursday, STMicroelectronics reported fourth-quarter net revenues of $3.32 billion, up by 22.4%, topping the analyst estimate of $3.31 billion. EPS of $0.37 missed the analyst estimate of $0.38.

Also Read: Amazon Cuts More Jobs in Cost-Saving Push: Report

Gross margin plunged 780 bps to 37.7% owing to product mix. Operating margin fell by 1,280 bps to 11.1%.

STMicro, which is a supplier to big tech like Apple Inc AAPL and Tesla Inc TSLA, is grappling with a demand slump in the industrial and auto sectors.

The Italian government, which together with France holds a 27.5% stake in the company seeks to limit the restructuring’s impact on the Italian workforce, Bloomberg reported, citing unnamed sources familiar with the matter.

STMicroelectronics expects first-quarter revenue of $2.51 billion, below the analyst estimate of $2.76 billion. STMicroelectronics on Thursday called 2024 one of the industry’s worst years in decades.

ON Semiconductor Corp ON flagged weak demand in auto and industrial markets, with fab utilization likely to plummet below 65%.

STM Stock Prediction For 2025

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of STMicroelectronics have an average 1-year price target of $30.5, representing an expected upside of 33.45%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on STMicroelectronics, while 2 analysts have bullish ratings. The street high price target from Susquehanna is $33.0, while the street low from Susquehanna is $28.0.

Price Action: STM stock traded higher by 1.53% to $22.87 at the last check on Friday.

Also Read:

• Arm China Eyes Leadership Change As AI Boom And US-China Relationship Reshape Industry

Photo by Michael Vi via Shutterstock