Ericsson to cut up to 500 staff globally

Chip maker ST-Ericsson says it plans to cut up to 500 jobs worldwide as part of a move to save $120 million a year.

The joint venture between Swedish wireless equipment firm LM Ericsson AB and Swiss chipmaker STMicroelectronics said Thursday it will launch a new cost-cutting plan to achieve the savings by the end of 2012.

The Geneva-based joint venture blamed the cutbacks on “recent changes in the business environment and reduced demand for legacy products at certain customers.”

It said it will announce further details of the layoffs and which countries will be affected after it has been in contact with unions.