Is this real ?
5 replies (most recent on top)
Maybe this rumour was related to @VNNznTh, which came 2 months later... so it was true
The problem with changing this CEO is that the company is owned 85% by institutional investors with Blackrock being the largest fund made up of private equity and institutional investors.
NXP Taiwan s---s which has over 30 FAEs who always doing the project with very low revenue, their salary is super high but NXP's headquater's is always ignore this, very wired.
A couple of big moves by RC in last year or two should give everyone an insight into his thinking. It's not possible to simple lay off employees easily in Europe however you can get around some of the bureaucrats by claiming that a business unit is no longer viable and either selling it or closing it on that basis is the only answer. SP is gone, RF (Europe) is gone. Various fab based JV's with China are gone - so over 10,000 European based workers are no longer with the company - dropping from about 41/45k down to just under 30k now I believe with cuts to xFSL. If I had to guess xFSL must be down to under 12K from the 17K that existed during the merger. Any pruning in Europe will be site based so I agree with the OP, its a different dynamic than the US where they fire in small numbers in continuous rotation so as not to affect the morale. But its too late for that, Morale is in the toilet. RC said the company was suffering QCom merger fatigue, but I think it was mostly fatigued by what he was doing to the units in the US. And if you look at it, Europe does have too many sites and still has too many employees. I think the question really is "what will they sell next?". They were happy to give up IP to secure cards in the Qualcomm takeover talks so it would seem logical they may wrap that up and sell it to Infineon or someone. You don't give up anything strategic like that in discussions if its worth something to you. Fabs are still the elephant in the room. At some point I think Dutch incorporation and tax is also going to be an issue with China and the US. It is going to limit some of the deals / sales that can be made. I still don't know how they maintain credibility with this CEO however. I would have thought they would be looking for a change back to a European CEO sooner rather than later in order to wipe the slate clean and concentrate on core opportunities in Europe. ST has done well partly for this reason.
No such news so far.