Intel Ireland, measures to contain costs include 3 months of unpaid leave

intel did not communicate the number of layoffs which it intends to implement as part of its plan to reduce costs by $3 billion in 2023, but among the measures is to push Irish employees to “enjoy” a three-month “unpaid holiday”..

According to the local media, to about 2,000 workers out of a total of 5,000 of the production plant in Leixlip were offered three months of voluntary unpaid leave in an effort to reduce overheads.

In a note sent to The RegisterIntel said it is taking steps to reduce costs and improve efficiency while safeguarding the investments needed to position the company on a long-term growth trajectory. This means that, for now, investment plans in Europe (and in Italy) have not changed.

Intel will also continue to invest in Leixlip, Ireland, for the plant expansion project. It will commit an additional 12 billion euros and double the space for production, bringing the Intel 4 manufacturing process to European soil and expanding the production service for external customers. Once the expansion is complete, Intel’s total investment in Ireland will amount to more than €30 billion.

“Retaining our manufacturing talent is a key element in positioning Intel for long-term growth. Voluntary leave programs allow us to reduce costs in the short term and offer employees attractive leave options“, continues the note of the Intel spokesman.

Intel closed the third quarter of fiscal 2022 with a revenue of $15.3 billion, down 20% over the same period last year. The company reported net income of $1 billion, down 85% year over year. A trend which, by virtue of a fourth quarter that should be positioned at similar levels, have led it to revise its annual turnover estimates, bringing them from 76 to 64-64 billion dollars.

As known, in addition to the difficulties associated with very strong competition, Intel also has to contend with the macroeconomic trend and a sharp reduction in PC sales compared to the pandemic period.