STMicroelectronics To Shed 3,000 Jobs Globally But Hasn’t Confirmed Malta Impact
STMicroelectronics will cut up to 2,800 jobs globally over the next three years as part of a wide-ranging overhaul of its manufacturing operations. It remains unclear whether its Malta facility will be affected, despite plans to upgrade the Kirkop site with new automation technologies.
The Geneva-headquartered company disclosed the plans in an announcement issued yesterday, stating the job cuts would be carried out on a voluntary basis, primarily in 2026 and 2027, and come on top of natural attrition. At the same time, it said it would invest heavily in advanced manufacturing, automation and artificial intelligence — with its Kirkop site among the locations earmarked for new technologies to support next-generation products.
The restructuring forms part of a wider strategy to sharpen competitiveness and reduce costs as the chipmaker faces pressure from slowing demand for legacy semiconductors used in cars and industrial equipment. While the global semiconductor market is being reshaped by the AI boom, not all segments are growing — and STMicroelectronics, which downgraded its guidance several times last year, is looking to reposition.
In its January earnings report, the company forecast a 28% year-on-year drop in Q1 revenue, missing analyst expectations. That followed the October launch of a three-year programme to reshape its manufacturing footprint and cut costs, with CEO Jean-Marc Chery targeting “high triple-digit million-dollar” annual savings by the end of 2027.
Focus on advanced manufacturing
ST’s investment strategy now centres on building future-ready infrastructure — including 300mm silicon and 200mm silicon carbide technologies — across its global sites. Kirkop, ST’s high-volume test and packaging facility in Malta, is set to benefit from this shift, with the global company confirming it will be upgraded with advanced automation technologies to support next-generation products.
When contacted, a spokesperson for STMicroelectronics in Malta referred us to the company-wide announcement and specifically to the section outlining the planned upgrades at the Kirkop facility but did not comment further or any potential layoffs. Speaking to the Times of Malta in February, a spokesperson for the company said that the Kirkop site would not be impacted by the measures, noting that the operations like research and development and non-production activities, which take place outside of Malta.
However, the company announcement issued on Friday specifically says that ST will be reshaping its manufacturing footprint over the next three years, add adding that the “workforce size and required skill sets will evolve”.
“Advanced manufacturing will shift roles from legacy processes involving repetitive manual tasks to a stronger focus on process control, automation, and design. ST will manage this transition through voluntary measures, with a continued commitment to ongoing constructive dialogue and negotiations with employee representatives in accordance with applicable national regulations.”
The company did not comment further about the matter and it is unclear whether the situation has changed since February.
The cuts represent a small portion of the company’s global workforce. STMicroelectronics employed around 50,000 people at the end of 2024, meaning the planned reduction affects approximately 6% of staff worldwide.
Malta’s semiconductor vision
The Maltese government has highlighted semiconductors as a strategic growth area in its Vision 2050 document, published earlier this year. It said Malta’s manufacturing industry would undergo a transformation driven by Industry 4.0, with a focus on high-value sectors such as pharmaceuticals and semiconductors.
The vision includes plans to scale up production among existing players and attract new entrants to the semiconductor space, with the goal of making the sector contribute 1% of national GDP by 2035.
With STMicroelectronics already operating one of the country’s most advanced manufacturing sites, the company’s next moves at Kirkop will be closely watched by government and industry alike.
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