Intel’s workforce in Ireland is awaiting details on how the company’s plan to cut 15,000 jobs globally will impact on its operation in Leixlip.
The impact of those job losses on Intel’s Irish operation is not yet known. A spokeswoman for the company said the number of impacted roles would vary across each business unit and in each region, and there was no exact number for the Irish business yet. Intel did not comment further.
The news will come as a shock to staff who have already seen staff numbers trimmed in recent years as part of the wider retrenchment in the tech industry. According to Intel’s website, it has 4,900 employees in Ireland and if a 15 per cent cut were to be applied it would amount to 735 roles here.
Minister of State James Lawless, a Kildare North TD, said he was “confident” that Intel would continue to provide quality employment here.
“Intel have very recently invested in a multibillion campus expansion at the fabs in Leixlip,” he said. “This is a sign of their continued commitment to this location and their operations here. The EU Chips Act also supports domestic production of microchips within the EU as such crucial assets cannot be dependent on uncertain circumstances with China and other states varying allegiances and priorities.
“Whilst the local impact of Intel’s job cuts is not yet known, I am confident that the company will continue to provide high quality employment and activity here. Anyone who is affected by these moves will be supported by State agencies and my office remains available to offer assistance also.”
In June, it was announced that investment group Apollo and its affiliates would provide $11 billion (€10.1 billion) to Intel to buy a 49 per cent stake in a joint venture entity related to its Fab 34 facility in Leixlip. The plant is Intel’s leading-edge high-volume manufacturing facility designed for wafers using the Intel 4 and Intel 3 process technologies. To date, Intel has invested $18.4 billion in Fab 34.
The joint venture will manufacture wafers for sale to Intel on a cost-plus-margin basis. Under the agreement, Intel is required to finish the buildout of Fab 34 and purchase wafers from the joint venture for itself and external customers, with minimum volume commitments for its wafer demand following the substantial completion of the facility.
On Thursday, Intel chief executive Pat Gelisinger outlined plans to trim $10 billion in costs next year to align with its new business model. It also scrapped its dividend and announced an unexpected reversal in its surging capital spending.
Intel said it would cut 15 per cent of its workforce worldwide and that.most of its planned actions would be in place by the end of the year. Its share price fell by more than 20 per cent after the news broke.
“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate. Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI,” Mr Gelsinger said. “Our costs are too high, our margins are too low. We need bolder actions to address both – particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.”
Intel is also planning enhanced retirement packages and voluntary redundancy offerings.
It is understood that a number of meetings will take place next week to begin the process. It could be some time before an exact figure is known and the impact on various business units.