STMicroelectronics, Europe's top chipmaker, has posted a $366 million net loss for Q4 2008, and unsurprisingly, the outfit plans to axe 4,500.

The outfit released its results on Tuesday, blaming the state of the economy, order cancellations and a slump in demand for the poor results. In the same quarter of the previous year, the net income was $20 million.

"All product areas were negatively affected, in particular automotive, wireless and computer peripherals," said Carlo Bozotti, president and CEO.

STMicro plans to cut costs by more than $700 million this year, cutting 4,500 jobs in the process.

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