STOCKHOLM — Swedish wireless equipment maker Ericsson and Switzerland's STMicroelectronics say they will lay off up to 1,600 workers globally as part of a plan for splitting up their loss-making joint venture.
STMicroelectronics, one of Europe's largest chipmakers, announced in December that it wanted out of ST-Ericsson as it struggled with a downturn in global demand. After months of talks the two companies said Monday they had agreed to end the joint venture.
Ericsson says it will take on the joint venture's "thin modem" products, designed for smartphones and tablets while STMicroelectronics will deal with other existing products and related businesses.
The two companies said they will begin to shut down the remaining parts of the joint venture, with some 700 of the job cuts in Europe, mostly in Sweden.
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