Microprocessor giant Intel, which employs around 5,500 people in Ireland, may be about to lay off anything between 10,000 and 20,000 workers as part of an aggressive US$1bn cost-cutting plan, it has emerged.
According to a report in the Wall Street Journal today Intel chief executive Paul Otellini may announce the job cuts on Tuesday (5 September) following an internal 90-day review.
Analysts’ estimates vary between 10,000 workers being laid off to more than 20,000 workers if Intel wants to impress investors with its intentions.
The internal review process began in April after Intel forecast its first sales decrease in five years, losing sales to Advance Micro Devices.
Second quarter earnings plummeted 57pc and revenues fell 13pc due to weaker demand for Intel’s microprocessors.
In July Intel said it would cut 1,000 managers worldwide. Globally the company employs 99,000 people.
The company operates two wafer fabrication facilities in Leixlip, Co Kildare, Fab-10 and Fab-24, as well as an R&D operation in Shannon. Representing an investment in excess of US$2bn, Fab-24 was opened in June this year and is said to be one of the most advanced high-volume semiconductor manufacturing plants in the world building multi-core microprocessors, along with Intel’s Fab 12 in Arizona and D1D Fab in Oregon.
By John Kennedy