Chipmaker Intel is offering employees in Ireland a three-month sabbatical from their job, but without pay. The move is part of the company’s cost-saving measures.
According to various reports in the Irish media, thousands of workers at Intel’s manufacturing facility in Leixlip, County Kildare have been offered a three-month voluntary unpaid leave to cut overhead costs.
The move follows Intel’s October announcement that it would lay off an unspecified number of employees and even exit some product lines in response to a deteriorating global economy. Those plans are part of a massive spending cut, with Intel looking to cut $3 billion annually starting next year and between $8 billion and $10 billion through 2025.
But that won’t stop the chipmaker from continuing to invest in building new chip manufacturing facilities, Intel confirmed this week as the company reiterated its commitment to manufacturing expansions in the US and Europe that will cost billions of dollars.
In an official statement sent to The registryIntel said it is taking steps to reduce costs and improve efficiencies detailed during its recent earnings conference call, while protecting the investments needed to position the company for long-term growth .
“Retaining our manufacturing talent is a key element in positioning Intel for long-term growth. Voluntary time off programs give us the opportunity to reduce short-term costs and offer employees attractive time off options,” the statement continued.
This latest conference call revealed that Intel’s revenue for the three months ended September 30 fell 20 percent year over year to $15.3 billion, while net income also fell 85 percent to $1 billion.
Intel’s Leixlip campus is located on the site of a former stud farm and is expected to employ more than 4,500 people. It had previously undergone an upgrade project that turned the site into a key location for manufacturing chips using Intel’s 14nm process technology.
Earlier this year, Intel announced that it plans to spend an additional €12 billion ($12.6 billion) to double the manufacturing footprint at Leixlip to include Intel 4-process technology, previously known as Intel’s 7nm process was also expanding its foundry services to Europe. ®
https://www.theregister.com/2022/12/02/intel_ireland/ Intel is offering Irish employees a three-month unpaid break • The Register