Infineon, a leading German chip manufacturer, is implementing a cost-saving program that involves cutting or relocating a total of 2,800 jobs. This initiative is part of a previously announced plan to streamline operations and reduce expenses amid weaker demand for its products.
The company aims to eliminate 1,400 positions, including a significant number at its Regensburg site. Additionally, Infineon will relocate another 1,400 jobs to more cost-effective locations in North America and Asia, where the company already operates. The specific details of the job cuts and relocations have not yet been disclosed, as the company prioritises informing its employees first.
Despite these measures, Infineon CEO Jochen Hanebeck emphasised that there will be no layoffs in Germany. He acknowledged the difficulty of this decision but stressed its necessity to maintain the company's competitiveness in the challenging semiconductor market.
Infineon remains committed to its Regensburg site, which will be transformed into a central hub for innovation, ensuring its long-term viability. Moreover, the company plans to continue expanding its Dresden location by creating additional jobs.
Infineon's cost-saving efforts come as the chip industry grapples with a decline in demand for its products. In the third quarter of its fiscal year, the company reported a profit of €403 million, a significant decrease compared to the previous year but still a positive outcome.
By streamlining its operations and optimising its workforce, Infineon aims to navigate the current market challenges and emerge stronger in the future.
