Intel is targeting its staff with over 20 years of experience as part of its plan to remove 12,000 jobs globally, says the Independent, citing unnamed sources. The chip maker has given its long-serving and experienced staff about three weeks — until May 27 — to decide if they want to take a voluntary exit.
Intel targeting experienced staff for voluntary exit
Staff members were told to access an online tool to work out how much of a redundancy package they are entitled to, the report said. On May 5, the voluntary sign-up period opened, and the chip maker has given a deadline of May 27 to experienced workers to click “accept” on the “selection tool.” Due to the fall in demand for PCs, the chip making giant is seeking at least 400 departures from the workforce of 4,500 in plants in Shannon, Leixlip and Cork. Intel has shifted its focus to cloud computing and Internet of Things.
This news of redundancies has come as a shock in Ireland where the company has invested €3.6 billion in the last five years upgrading the Leixlip plant. Leixlip is Intel’s biggest plant in Europe.
What are the criteria?
Staff members with a lot of expertise who are based at Intel’s 350-acre campus in Leixlip were selected for this program, including workers in all positions, from maintenance technicians and process technicians to planning and yield engineers, the report said.
The length of service is the main criterion, especially if they have been in the same position for a long time. Though Intel did not specify the procedure of selecting the employees for the redundancy program, staff members with less than 20 years’ experience were turned down when they applied, the report said.
No surety of job
As of now, Intel has told the workers that they can stay and continue working, but those who are “on the list” are afraid that they will be viewed as “stagnant,” and in the event of further cuts, they may be the first to go. The workers fear that this redundancy offer, which is five weeks’ pay per year of service, plus statutory, capped at two years’ pay, may be taken back, the report said.
“Whatever way they were selected, no one in Ireland had a say,” said a source. “It came from the States. The new CEO let executives go last year and what he seems to want is young workers on lower wages pushing upwards for promotion constantly.”
On Monday, Intel shares closed down 0.8% at $29.80. Year to date, the stock is down almost 15%, while in the last year, it is down by over 9%.