Intel told the 5,500 staff members at its Irish plant that its recent announcement of massive job cuts will impact those operations. Last week, the chip maker announced plans to lower its workforce by 12,000 around the world in an attempt to shift away from PCs.
Intel managers to communicate the news soon
According to the Irish Independent, the chip maker informed the staff members of the upcoming impact to its Irish operations via an internal email. But until next week, the employees will not be told whether or not they are impacted. Within 72 hours of May 4, managers will try to communicate with the staff, the message said.
Each segment will communicate its decisions over the next 60 days, and decisions on a specific co-location of a group, project cancellations or project efficiencies are underway, the message said. The employees were offered access to help with the process, including professional counseling services, as well.
By appealing to the staff to be “mindful and take care of each other,” the country manager of Intel’s Irish operations, Eamonn Sinnott, ended the email. Intel is one of Ireland’s biggest multinational employers.
Management hopeful that impact will be limited
Currently, Intel employs 4,500 people at its manufacturing facility in Leixlip, and the rest are spread across its security business in Cork and in Shannon, which holds its research and development labs. Intel is in the process of spending $5 billion on upgrading the Leixlip manufacturing operation, management revealed two years ago. The work is complete now, and the plant is producing 14nm chip technology.
The recent changes are mostly due to the ongoing shifts in the computer market, and Intel’s effort to move away from traditional PCs to the Internet of Things (IoT), cloud computing and mobile. The chip maker is broadly perceived to have missed the opportunities created by the constant growth of the mobile market, but it is in the right position to benefit from the explosion of the cloud market and the Internet of Things (IoT).
Intel’s Irish operations are heavily involved in both IoT and cloud computing, so management is hopeful that there will be a limited impact on them.
On Thursday, Intel shares closed down 2.02% at $31.11. Year to date, the stock is down by over 11%, while in the last year, it is down by over 3%. The stock has a 52-week high of $35.59 and a 52-week low of $24.87. This week so far the stock has declined by almost 3%.