Chip maker ST-Ericsson plans to cut around 600 jobs (7.5 per cent of its workforce) worldwide as part of a move to save $115 million a year.

Chip maker ST-Ericsson plans to cut around 600 jobs (7.5 per cent of its workforce) worldwide as part of a move to save $115 million a year. This will be the third round of restructuring and job cuts that the loss-making company has announced in the past year.

Created by combining the wireless chip operations of three groups ?? Ericsson, NXP Wireless and ST Microelectronics ?? the company announced 500 staff cuts in November 2008 to save $250 million and 1,200 more redundancies in April 2009 to save $230 million a year. To further reduce operating expenses, the company is likely to introduce an efficiency programme within its R&D operations.