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UPDATE 1-ST-Ericsson targets extra $115 mln in savings

* Sees savings from lower op expenses, efficiency programme

* Workforce review may mean up to 600 jobs cut

STOCKHOLM Dec 3 (Reuters) - Cellphones chipmaker ST-Ericsson said on Thursday it would target additional annualised cost savings of $115 million and conduct a review of its global workforce that could mean up to 600 job cuts.

The joint venture of Sweden's Ericsson ERICb.ST and Franco-Italian chipmaker STMicroelectronics STM.PA announced the details of its savings plan in a statement following a reorganisation announcement made in July this year.

“These savings are expected to come from reductions in operating expenses and spending, along with an extensive R&D efficiency programme,” it said in the statement.

ST-Ericsson supplies the world's biggest handset makers including Nokia NOK1V.HE, Samsung 005930.KS, Sony Ericsson 6758.T and LG Electronics 066570.KS.

The firm, which competes with Qualcomm QCOM.O and Texas Instruments TXN.N, said in October it would break even on sales of $750 million to $800 million, but that a stronger euro was adding to difficulties in reaching that target.

It said then that a first phase of restructuring aimed at cutting $250 million from operating expenses was substantially completed at the end of the third quarter.

A second step announced in April to reduce a further $230 million of costs would boost results from around the start of 2010, it has said.

According to the company’s website, ST-Ericsson employs approximately 8,000 people worldwide, with more than 85 percent of its staff in R&D. (Editing by Hans Peters) ((Stockholm Newsroom, tel: +46-8-700 1017, e-mail: stockholm.newsroom@reuters.com))

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