NEW YORK (AP) -- Chipmaker ST-Ericsson, the Geneva-based joint venture of STMicroelectronics N.V. and LM Ericsson Telephone Co., on Monday said it would cut 1,700 jobs, or a quarter of its work force.
ST-Ericsson expects the restructuring to take until the end of next year and cost $130 million to $150 million. Its goal is to save $320 million per year from the job cuts.
The joint venture also said it would transfer its applications processor research division to STMicroelectronics. Applications processors act as the brains of smartphones and tablets.
ST-Ericsson will continue to develop wireless modems on its own.
Last year, ST-Ericsson lost $841 million on $1.65 billion in sales. The sales were down 28 percent from the year before. The company has lost money every years since it was formed in February 2009.
In June, ST-Ericsson said it planned to cut 500 jobs.
