MUNICH, Germany — Mobile handset chip vendor ST-NXP Wireless will close its activities in Dresden and Nuremberg (both Germany). The move is part of a major restructuring effort announced earlier.
According to a company spokesperson, the chip vendor plans to entirely close the respective locations. This will the elimination of 160 jobs. As reported, the company plans to reduce its headcount by a total of 500 in the context of a major restructuring. The job cuts announced now will become effective "as soon as possible", according to the spokesperson. Media reports suggest March 2009 as the point in time when the lights go off.
The Dresden design center currently employs 55 persons. It was launched in 1999 as a chip company named SystemonIC and taken over by Philips in 2002. According to media reports, the staff is considering to launch a new spin-off.
The Nuremberg activities also include design and development. At that location, 105 engineers and other workers' positions will be cancelled.
ST NXP Wireless was launched in mid-2008 as a joint venture of STMicroelectronics and NXP as junior partner with a stake of 20 percent. In August, NXP backed out of the company and Ericsson of Sweden announced to move in. The Joint venture currently employs about 7500 persons worldwide.
