Chip maker STMicroelectronics has finally confirmed it will be downsizing its large operation in Malta after months of speculation, in line with its worldwide cost reduction programme announced on Tuesday.
In a presentation to investors, ST's chief financial officer Carlo Ferro said ST will be shedding 3,500 manufacturing jobs, which would include a "substantial downsizing of the assembly operation in Malta".
Even so, officials at the Malta plant yesterday could still not tell how many employees would be made redundant.
"We have nothing to add to what the corporate company said. We have no indication as to the number of lay-offs yet," ST group human resources manager Tonio Portuguese told The Times.
It is unclear whether the government had been informed of the impending layoffs during its recent talks with the management at the Kirkop plant.
Last Wednesday, Finance Minister Tonio Fenech told The Times the government was not aware of any plans for mass redundancies at STMicroelectronics. "From the discussions we have had with ST, it is not the case that the company wants to lay off people. This does not result to us," he had said.
Yesterday he would only say that "the government had not been informed of any plans by ST, other than those already reported in the media".
The plans referred to by Mr Fenech are the cost reduction of $700 million in 2009 and the removal of approximately 4,500 jobs worldwide.
He said: "This figure includes the closing down of its line in Texas and Arizona, the closing of operations in Morocco, relocation of the Singapore facility to China, as well as downsizing in Malta".
However, when asked whether he had become privy to this information during discussions or after reports in the media, he said he had no further comment to make.
Earlier yesterday he met the General Workers' Union along with the Prime Minister to discuss the situation.
The Office of the Prime Minister released a statement following the meeting but there were no new details in it. The statement said the government had explained how it had been holding talks with the firm for the past two years, and that discussions intensified as the international financial crisis kicked in.
Mr Ferro said ST wanted to reduce its cost base and this included the loss of 4,500 jobs with 3,500 of those jobs being in manufacturing. He also announced the closure of the plant in Morocco.
ksansone@timesofmalta.com