As part of a major reorganization, the The US chipmaker plans to reduce its global workforce by up to 15%. Although Intel has not disclosed any figures, the move could result in around 730 people losing their jobs at its Leixlip facility in Ireland.
Previously, on August 9, the Department of Enterprise received formal notification of the proposal Collective dismissals from Intel. This notice indicated the company’s intention to cut more than 30 jobs over the course of 30 days.
Intel has offered its Irish employees voluntary severance packages of up to €500,000. It also includes a base offer of five weeks’ pay for each year of service, up to a maximum of 104 weeks’ pay.
Irish news outlet Business Post, citing an internal memo, said the company would make decisions on voluntary severance requests based on business priorities, potentially rejecting some employees who asked to leave.
“Business units will review all employees who are eligible and submit the application to the [voluntary severance] “This tool will be used by the government and will make decisions on who will be accepted and who will not, based on commercial priorities,” the memo reads.
Intel’s internal memo warns that requesting voluntary severance does not guarantee that someone’s job will be saved. “Because actions of individuals are business unit decisions, there may be multiple factors that contribute to a business unit’s decision to take an action with respect to individuals and what type of action to take,” it states.
A company spokeswoman declined to specify the number of jobs to be cut or how many would be mandatory. “We are working through the details to understand the local impact and are not disclosing a number at this time in relation to the impact in Ireland,” she said.
This development comes after Intel recently revealed to analysts that the acceleration of its production move to Ireland last year significantly impacted its quarterly profit margins. According to Intel CFO David Zinsner, the move to Leixlip impacted profit margins as “Ireland is a higher cost environment.”
The workers had until last Friday to request voluntary resignation, and the decision will be announced on September 6.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.