Infineon to cut 1,400 jobs
Infineon, the chipmaker, aims to save by cutting or relocating a total of 2800 jobs. These measures are part of a program announced months ago, with figures now revealed. 1400 jobs are set to be cut, including a mid-three-digit number at the Regensburg site, which was already known.
Additionally, the company plans to move 1400 jobs to cheaper locations. This will affect all "high-wage countries" from North America to Asia, said Infineon CEO Jochen Hanebeck. Initially, these jobs will go to more favorable countries where Infineon is already active. The exact locations of the remaining job losses or relocations were not immediately disclosed.
The company aims to inform employees first, explained the manager. He ruled out redundancy dismissals in Germany. The measures are "a difficult step" that the management "has not taken lightly."
Regensburg, the site affected by the job cuts, will remain "a central location," emphasized Hanebeck. It will be further focused on innovation, ensuring its long-term security. Regarding the Dresden site, the Infineon CEO stated that jobs would continue to be created there.
Currently, Infineon, like many other chipmakers, is struggling with weak demand for its products. In the recently concluded third quarter of its fiscal year, the company made a profit of 403 million euros. While this is less than half of what it was a year ago, it is still far from the loss zone.
Infineon's CEO, Jochen Hanebeck, mentioned that 1400 jobs will be relocated to cheaper locations, affecting high-wage countries globally. Infineon, in its cost-cutting efforts, will move jobs from regions with higher wages to countries where it already has a presence.
