On June 5, STMicroelectronics CEO Jean-Marc Chery announced that the company expects around 5,000 employees to leave over the next three years as part of a cost-cutting initiative, including 2,800 job cuts revealed earlier this year. About 2,000 of the departures will come through natural attrition, while the rest will include voluntary exits.

The European chipmaker, which employs 50,000 people globally, is implementing a multiyear restructuring plan aimed at saving hundreds of millions of euros by 2027. The plan includes workforce reductions through early retirement and attrition. Chery noted that discussions with stakeholders and government authorities remain on track but hinted that delays are possible in some countries, particularly Italy.

Italy's government has voiced dissatisfaction with ST's leadership in recent months, amid a prolonged market downturn and allegations of insider trading against the CEO—claims the company has denied. Italy and France jointly hold a 27.5% stake in STMicro through a public holding entity.

In April, STMicro announced 1,000 voluntary layoffs in France as part of the broader 2,800 planned cuts, while negotiations with Italy are still ongoing. Italian unions have strongly opposed a proposal to cut 1,200 jobs at ST's Agrate plant in the Lombardy region, calling it “unacceptable” and requesting urgent talks with the government.

Despite the internal tensions, Chery said he sees early signs of a market recovery this year. STMicro shares jumped 11.1% on Wednesday, closing at €24.94—their biggest single-day gain since March 2020.