Intel plan to shed 15,000 jobs in global workforce reduction

Intel is to cut around 15,000 jobs globally, the equivalent of 15% of its workforce with many of those employees residing in Co Meath.

It is not yet known what impact the announcement will have on its 4,900 Irish-based employees.

In a message to staff, Intel CEO Pat Gelsinger said that next week the company would announce an enhanced retirement offering for eligible employees and broadly offer an application programme for voluntary departures.

"This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company's history," Mr Gelsinger said in his message to staff.

"Our revenues have not grown as expected and we’ve yet to fully benefit from powerful trends, like AI."

"Our costs are too high, our margins are too low. We need bolder actions to address both, particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected," he said.

"These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career," he added.

The US chipmaker remains a major player in the personal computer and server markets, but has struggled to keep pace with the growing demand for chips used in artificial intelligence (AI).

In October 2022, Intel announced a major cost-cutting plan which included thousands of redundancies as it looked to reduce its global headcount from almost 132,000 to just under 125,000.

At its Irish operation, it led to 130 redundancies, pay cuts for senior managers and offers of voluntary unpaid leave to a large portion of its Irish-based workforce.

Kildare North TD and Minister of State at the Department of Transport, James Lawless described Intel as a central pillar of the national economy and local economy in Kildare, especially in Leixlip and surrounding areas.

"Intel has very recently invested in a multi-billion campus expansion at the Fabs in Leixlip," Mr Lawless said.

"This is a sign of their continued commitment to this location and their operations here.

"Whilst the local impact of Intel's job cuts is not yet known, I am confident that the company will continue to provide high quality employment and activity here.

"Anyone who is affected by these moves will be supported by state agencies," he added.

More to follow...