Intel May Impose Mandatory Layoffs On Over 700 Employees In This Region Without Severance; Check Details

Intel has offered its Irish employees voluntary severance packages worth up to 500,000 euros, including a base offer of five weeks' pay for each year of service, with a maximum limit of 104 weeks' pay

Intel Layoffs: The memo states: "Business units will review all employees who are eligible and apply in the [voluntary severance] tool and will make decisions about who will be accepted and who will not, based on business priorities"

Source : Intel

Intel Layoffs: Intel employees in Ireland are likely to face mandatory layoffs as the company’s voluntary severance program nears its end, according to internal documents accessed by the Irish news outlet Business Post. An internal memo reviewed by the outlet indicates that Intel will evaluate voluntary severance applications according to "business priorities," which means some employees who have applied for voluntary separation might have their requests denied.

The memo states: "Business units will review all employees who are eligible and apply in the [voluntary severance] tool and will make decisions about who will be accepted and who will not, based on business priorities."

As part of a significant restructuring effort, the chipmaker is seeking to reduce its global workforce by up to 15 per cent. Although the company has not disclosed the exact number of positions that will be eliminated in Ireland, applying this reduction target to its operations in Ireland could potentially lead to approximately 730 job losses at its Leixlip facility, as per the report.

On August 9, the Department of Enterprise officially received notification from Intel regarding proposed collective redundancies. This formal notice indicates that Intel plans to cut more than 30 jobs over the course of a 30-days.

Intel has presented its Irish employees with voluntary severance packages worth up to 500,000 euros. The packages include a base offer of five weeks' pay for each year of service, with a maximum limit set at 104 weeks' pay.

The internal memo from Intel cautions that applying for voluntary severance does not ensure that others will retain their positions. It states: "Because people actions are business unit decisions, there may be multiple factors contributing to a business unit's decision to take a people action, and what kind of action to take."

In the report, an Intel spokeswoman refrained from providing specific numbers regarding job cuts in Ireland or how many would be mandatory, explaining: "We are working through the details to understand the local impact, and we are not disclosing a number right now in relation to impact in Ireland."

This update follows Intel’s recent announcement to analysts, which revealed that the accelerated shift of its manufacturing operations to Ireland last year had a notable effect on its quarterly profit margins. David Zinsner, Intel’s chief financial officer, attributed the impact on profitability to the higher costs associated with operating in Ireland.

Employees had until last Friday to submit their applications for voluntary severance. The company plans to communicate its decisions on September 6.