Infineon Layoffs: German Chipmaker To Fire 1,400 Employees; Details Here

Infineon Layoffs: CEO said, “The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand"

Infineon Layoffs: Infineon, which employs approximately 58,600 people globally according to its website, has adjusted its annual revenue guidance to around 15 billion euros

Source : Infineon

Infineon Layoffs: Infineon Technologie’s CEO, Jochen Hanebeck, announced on Monday that the chipmaker will be cutting 1,400 jobs and relocating an additional 1,400 employees. This decision comes after the company's revenue for the third quarter fell short of expectations, leading Infineon to revise its full-year forecast downward for the third time in a few months, according to a Reuters report.

Infineon, which employs approximately 58,600 people globally according to its website, has adjusted its annual revenue guidance to around 15 billion euros (approximately $16 billion). This adjustment marks the third revision of the company’s revenue outlook, with the most recent forecast set at 15.1 billion euros, with a margin of plus or minus 400 million euros.

The company's revenue for the April-June quarter amounted to 3.702 billion euros, falling short of the 3.8 billion euros projected in a company-provided consensus and representing a 9 per cent decline compared to the same period last year. Additionally, Infineon's net profit amounted to 403 million euros, which did not meet the set estimate of 447 million euros.

Hanebeck said, “The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand.”

According to CEO Hanebeck during a call following the financial results, as part of its previously announced “Step Up” cost-saving initiative, Infineon plans to reduce its global workforce by 1,400 jobs and relocate an additional 1,400 positions to countries with lower labour costs.

Infineon maintained its outlook for the segment result margin, which exceeded expectations at 19.8 per cent for the quarter. “In a market environment that remains challenging, Infineon continues to hold up well,” said Hanebeck.

The “Step Up” programme, unveiled in May, is expected to positively impact the company's adjusted results in the 2025 fiscal year. Additionally, Infineon reported a slight quarter-on-quarter increase in revenue for its automotive segment, reaching 2.11 billion euros. This growth was attributed to a stronger demand for "software-defined vehicles," which particularly helped its microcontroller business.