ST officially confirm plans to layoff 2800 employees by 2027.
Although no official numbers were released for India, sources inside the company hint that ST India R&D hubs in Greater Noida and Bengaluru are facing an unspoken hiring freeze, project stagnation, and upcoming restructuring.
The European semiconductor giant STMicroelectronics (ST) is sending shockwaves across the tech industry after officially confirming plans to layoff 2800 employees by 2027. While the company tries to frame the decision as part of a “strategic realignment,” the deeper truth paints a far more concerning picture.
This isn’t just a temporary market slowdown. STMicroelectronics seems to be facing an internal collapse, from slumping financials to rising employee frustration and a growing leadership credibility crisis.
Financial Numbers Tell a Story of Decline
ST’s 2024 financial report reveals a brutal downturn — one that no corporate press release can hide:
| Metric | 2023 | 2024 | Change |
|---|---|---|---|
| Net Revenue | $17.29 billion | $13.27 billion | -23.2% ? |
| Net Income | $4.25 billion | $1.56 billion | -63% ? |
| Operating Margin | 26.7% | 12.6% | Halved ? |
| Gross Margin (Q4) | 45.5% | 37.7% | -7.8% ? |
The message is clear: ST is struggling to survive in a competitive and fast-moving market.
Product Lines Are Failing to Deliver
STMicroelectronics isn’t just facing poor earnings — their core business segments are underperforming across the board:
- Microcontrollers: Down by 30.2%
- Analog & Imaging Chips: Down by 15.5%
Once a reliable supplier for the automotive and industrial sectors, ST seems to have been caught off guard by shifting demand patterns and global inventory corrections. The once-hyped automotive semiconductor boom turned out to be a bubble, leaving ST holding the bag.
Leadership Under Scrutiny: Investor Trust Hits Rock Bottom
While the company’s CEO, Jean-Marc Chery, publicly claims:
“We are restructuring for long-term resilience and growth.”
Reports surfaced of company insiders, including Chery himself, selling millions worth of ST stock before releasing poor earnings reports — triggering lawsuits and investor outrage.
Even the Italian government weighed in, officially opposing Chery’s continued leadership and voicing concerns over “lack of transparency and poor strategic execution.”
STMicroelectronics India: An Overlooked Casualty
Although no official numbers were released for India, sources inside the company hint that ST’s R&D hubs in Greater Noida and Bengaluru are facing an unspoken hiring freeze, project stagnation, and upcoming restructuring.
A former employee described the situation on LinkedIn:
“ST India has talent but lacks vision. Teams spend more time on damage control than real innovation.”
Employee Sentiment: Behind Closed Doors, Morale Is Rock-Bottom
A glance at platforms like Glassdoor and Indeed shows the internal picture is just as bad as the financials.
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“Upper management doesn’t listen. Slow processes. No room for ideas.”
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“Layoffs happen without warning. Promotions based on favoritism, not performance.”
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“They care more about quarterly numbers than employees’ wellbeing.”
It seems clear: employees and shareholders are losing confidence in the company’s future.
Is This the Beginning of the End?
STMicroelectronics is facing a perfect storm:
- Financial freefall
- Mass layoffs
- Leadership trust erosion
- Internal employee dissatisfaction
