- Intel is reducing its global workforce by up to 15%, potentially affecting 730 jobs in Ireland.
- Voluntary severance packages worth up to 500,000 euros are offered to Irish employees.
- Final decisions on severance applications will be communicated by September 6.
Intel is undergoing a significant global restructuring that may result in the elimination of approximately 730 positions at its Leixlip facility in Ireland.
As part of this effort, the company has offered voluntary severance packages to its Irish employees, which include a base offer of five weeks’ pay per year of service, capped at 104 weeks’ pay.
Intel’s Restructuring: Hundreds of Jobs at Stake in Ireland
The company officially notified the Irish Department of Enterprise about potential collective redundancies, indicating that more than 30 jobs could be cut within 30 days. This announcement follows Intel’s recent shift in manufacturing operations to Ireland, which has impacted its profit margins due to increased operational costs. Intel is expected to communicate its final decisions on the severance applications by September 6.
Despite the attractive severance packages, Intel has made it clear that applying for voluntary separation does not ensure that employees’ requests will be granted. Decisions regarding severance will be based on the needs and priorities of individual business units, and some employees may be required to stay on despite their applications. This has led to uncertainty among the workforce about the outcome of the restructuring.
Intel’s notification to the Department of Enterprise about possible collective redundancies has raised concerns about the local impact, as more than 30 positions are expected to be cut within 30 days. The restructuring is part of Intel’s broader strategy to reduce costs, particularly after its recent decision to move manufacturing operations to Ireland, which has affected its profit margins due to the higher expenses associated with the region.
The company has not disclosed the exact number of positions that will be eliminated in Ireland, but applying the 15% global reduction target could result in around 730 job losses. The final decisions on the voluntary severance applications are expected to be announced on September 6, adding to the uncertainty for Intel’s Irish workforce.
Intel’s restructuring efforts are creating significant uncertainty among its Irish workforce, with potential job losses and changes in employment status set to be revealed soon. The company’s focus on cost reduction and business priorities will ultimately determine the fate of hundreds of employees.
“Business units will review all employees who are eligible and apply in the [voluntary severance] tool and will make decisions about who will be accepted and who will not, based on business priorities.”
