Intel has invested more than €4 billion in recent years in Ireland on the renovation of two of its factories, but now it is preparing to lay off some workers there. Tomorrow, the staff is expected to be briefed about job cuts. The chip maker employs about 4,500 people at its Irish operations. There are concerns among staff members that up to 500 jobs could be lost in Ireland.
Government to support Intel staff
Since April 19, the day Intel made the shocking announcement that it will shed 11% or about 12,000 of its global workforce, the Irish government has been in close contact with the company. A senior government official said even after the projected job losses, the U.S. firm will remain a key employer and that its “processes have to be respected.”
A range of support, including re-training, access to social welfare and advice on employment law in case of any post-redundancy disputes, will be offered to those facing redundancy, says Independent.ie. Until the chip making giant informs staff about where the losses will come, the Irish government will not interrupt the work with support offers.
This Tiger Cub Giant Is Betting On Banks And Tech Stocks In The Recovery
The first two months of the third quarter were the best months for D1 Capital Partners' public portfolio since inception, that's according to a copy of the firm's August update, which ValueWalk has been able to review. Q2 2020 hedge fund letters, conferences and more According to the update, D1's public portfolio returned 20.1% gross Read More
Agencies like Enterprise Ireland and IDA, along with supporting those losing their jobs, will also focus on new opportunities and investment for those parts of Intel’s business that are not affected by the slash in demand for PCs.
Job losses a part of the cycle
Intel has about 700 long-term contract workers in addition to the 4,500 employees directly employed in Ireland. Most of the employees are working in Co Kildare, its chip-making complex in Leixlip. According to one worker, the loss of jobs is being seen as a part of the cycle in Intel’s business operations.
“The company has done this before. They launch an investment and follow that with redundancies,” the employee said.
In comparison to Intel’s other global operations, Ireland is less exposed as its main plants there are producing chips for data centers and high-end servers as opposed to PCs. Nevertheless, the chip maker’s global “accelerating change and transformation” restructuring process is expected to affect all parts of its businesses.
Employees will be notified “within 72 hours of 4 May” if they are going to lose their jobs, said Eamonn Sinnott, Intel’s Ireland manager, in an email to staff members last week.
On Monday, Intel shares closed up 1.09% at $30.61. Year to date, the stock is down almost 13%, while in the last year, it is down by over 8%.