700 Intel employees to be laid-off without severance pay in Ireland? Know more
Intel employees in Ireland may face mandatory layoffs as the voluntary severance program ends. Intel is reducing its global workforce by up to 15%, with around 730 potential job losses in Leixlip. Final decisions on voluntary severance applications will be announced by September 6.
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FollowIntel employees in Ireland may face mandatory layoffs as the company’s voluntary severance program comes to an end. According to internal documents obtained by the Business Post, the chipmaker is making critical decisions on voluntary severance applications based on business priorities, which could leave some employees without the option to leave voluntarily.
An internal memo, as seen by the Irish news outlet, reveals that Intel will assess voluntary severance applications by reviewing all eligible employees within each business unit. The memo outlines that business units will evaluate all employees who are eligible and apply through the [voluntary severance] tool, making decisions on acceptance or rejection based on business needs.
Intel is in the process of reducing its global workforce by up to 15% as part of a significant reorganization effort. While the company has not specified the exact number of jobs to be cut in Ireland, applying this target could lead to around 730 job losses at its Leixlip facility.
The Department of Enterprise has confirmed that it received formal notification of proposed collective redundancies from Intel on August 9. This indicates the company's intent to cut more than 30 jobs within 30 days, with the potential for further layoffs, reported TOI.
To soften the impact, Intel provided its Irish employees with voluntary severance packages valued at up to €500,000. The base offer includes five weeks' pay per year of service, capped at 104 weeks' pay. However, the internal memo cautions that applying for voluntary severance does not guarantee job security for other employees. The memo clarifies, "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."
An Intel spokeswoman did not reveal how many jobs would be cut in Ireland or how many would be compulsory. She stated, "We are still working on the details to understand the local impact, and we're not sharing any specific numbers for Ireland at this time."
This news comes after Intel informed analysts that the rapid transfer of its manufacturing operations to Ireland last year had notably affected its quarterly profit margins. David Zinsner, Intel’s Chief Financial Officer, noted that moving production to Leixlip affected profit margins because "Ireland is a higher-cost environment."
Employees had until last Friday to apply for the voluntary severance package, and the final decisions will be announced by September 6.
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