ST-Ericsson targets extra $115 million in savings

Up to 600 jobs at risk

The joint venture is also considering up to 600 job cuts.

"These savings are expected to come from reductions in operating expenses and spending, along with an extensive R&D efficiency programme," the company said in the statement.

ST-Ericsson supplies Nokia, Samsung, Sony Ericsson and LG Electronics.

The firm said in October it would break even on sales of $750 million to $800 million, but that a stronger euro was adding to difficulties in reaching that target.

It said then that a first phase of restructuring aimed at cutting $250 million from operating expenses was largely  complete by the end of the third quarter.

A second step announced in April to reduce a further $230 million of costs would boost results from around the start of 2010, it has said.

ST-Ericsson employs approximately 8,000 people worldwide, with more than 85 per cent of its staff in R&D.

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