STMicroelectronics plans to cut its workforce by up to 6% or around 2,000 to 3,000 positions, due to ongoing challenges in the chip industry, according to sources familiar with the situation.

The job reductions will primarily affect regions in Italy and France and will occur through attrition and voluntary early retirement programs.

The company confirmed it is in discussions with employee representatives to create voluntary support programs for those nearing retirement.

The Geneva-based company has faced a sustained decline in demand in the industrial and automotive sectors, prompting it to lower financial projections.

CEO Jean-Marc Chery called 2024 as one of the industry’s most challenging years in decades.

The company’s share price has fallen over 45% in the past year, and its first-quarter revenue forecast fell short of expectations.

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