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Intel offers Irish employees voluntary severance packages

Translate from : Intel tilbyder irske ansatte frivillige fratrædelsespakker

Intel has recently announced that it will lay off 15% of its total workforce to cut costs and reverse recent trends of disappointing earnings.

In Ireland, the chip maker has recently offered voluntary severance packages to its Leixlip staff which could amount to €500,000. The proposal, which was circulated among employees last week, gives staff until August 23 to apply for voluntary resignation.

Under the terms offered, employees with more than two years of seniority can receive an additional five weeks' pay for each year of seniority. This is in addition to Ireland's statutory rate of two weeks' pay per years of seniority, with a ceiling of 600 euros per week.

An employee can receive a severance package worth 500,000 euros if they are approved for voluntary resignation. Those who apply for the proposal will hear on September 6 whether their resignations have been approved, and those who are accepted will leave Intel on September 30.

Intel currently employs around 4,900 people in Ireland. If the chip maker applies its 15% workforce reduction to its Irish employees, it means around 730 workers will be made redundant.

Intel will have to do forced redundancies if they don't get enough volunteers for the severance plan. It is unknown whether Intel will apply the 15% figure directly to Ireland. Media Business Post contacted Intel for comment, but a company spokeswoman did not want to comment on specific details. She said Intel is still assessing the local impact of the cuts, so they are "not releasing a number right now on the impact in Ireland."

In 2022, Intel called for up to 2,000 employees in Ireland to take three months of unpaid leave to cut costs. It reduced their workforce by around five percent between October 2022 and the end of 2023.

It is important to note that Intel recently moved some of their high-volume chip manufacturing processes to Ireland. During a recent call with financial analysts, Intel pointed to this move as a major contributor to their declining gross margin in the quarter.

Chief Financial Officer David Zinsner said the move had resulted in savings of $1 billion in capital expenditures and would benefit Intel in the long term.