Infineon Technologies has revealed plans to lay off 1,400 employees worldwide and relocate another 1,400 positions to countries with lower labour costs as part of its cost savings programme.
The job cuts will involve reducing several hundred positions at the semiconductor company’s plant in Regensburg, Germany, a move previously disclosed.
Currently, the German company has a global workforce of approximately 58,600 people.
The announcement on the job cuts was made by its CEO Jochen Hanebeck on a call following the release of the company’s financial results for the third quarter of 2024 (Q3 FY 2024).
For Q3 FY 2024, the German chipmaker reported a profit of €404m, down by 52%, compared to the net profit of €831m in the same quarter of the previous year.
In the previous quarter, that is Q2 FY 2024, Infineon Technologies posted a profit of €394m.
The net revenue of the semiconductor major for the reported quarter ended 30 June 2024 was €3.7bn, a decrease of 9% compared to €4.01bn in the corresponding quarter of 2023.
Infineon Technologies’ diluted earnings per share (EPS) from continuing operations were €0.3 for Q3 FY 2024, a decline of 52% compared to the diluted EPS of €0.63 in Q3 of the prior fiscal year.
The German company expects to achieve a revenue of approximately €4bn in Q4 FY 2024.
Its revenue in the automotive segment in the third quarter of this fiscal year was €2.1bn compared to €2.01bn in the prior quarter.
Infineon Technologies’ revenues from the green industrial power segment remained flat from the prior quarter at €475m while the power and sensor systems segment grew by 5% to €749m in Q3 2024 compared to Q2 2024.
The company’s connected secure systems unit also remained unchanged in the third quarter of the fiscal year 2024 at €366m from the previous three-month period.
Hanebeck said: “In a market environment that remains challenging, Infineon continues to hold up well.
“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.
“In addition to managing the current demand cycle, we are working on further strengthening our competitiveness through the “Step Up” structural improvement programme.”
Last week, Intel also announced large-scale job cuts. The American semiconductor company plans to lay off approximately 15% of its workforce as part of a cost reduction programme.
Intel is targeting savings of over $10bn in 2025 in an effort to increase efficiency and market competitiveness.
