ST-Ericsson begins to offload R&D resources

Embattled chipset firm ST-Ericsson has agreed to transfer its R&D division based in Linköping, Sweden, to local IT consultancy Cybercom. The move follows recent speculation regarding the future of ST-Ericsson, the 50/50 joint venture between Ericsson and STMicroelectronics, as the company battles worsening losses.

ST-Ericsson has indicated that more changes are still to come.

Earlier this year the company said it foresees a global workforce reduction of 1,700 employees worldwide, from approximately 6,700, with changes to be complete by the end of 2013. The agreement with Cybercom will see the transfer of 27 R&D employees from ST-Ericsson to Cybercom, joining a team of 75 consultants offering connectivity engineering and security services to clients mainly in the industry segment in the region.

Cybercom will develop testing tool software for ST-Ericsson through June 2013.

“The agreement with Cybercom allows us to continue to progress on the site and resources strategy we announced in April,” said Carlo Ferro, chief operating officer of ST-Ericsson, “which aims to enhance operational efficiency of the company by reducing its worldwide activities into fewer sites lowering the break-even point.”

Earlier this week Ericsson said that it was “natural” for the parent companies to continuously review the strategy of the company, and that both parents are currently working with an external advisor in “order to ensure the best possible future for ST-Ericsson”.

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