Shulou(Shulou.com)11/24 Report--

Intel will reportedly offer three months of unpaid leave to thousands of employees in Ireland. The company plans to squeeze $3 billion next year to combat a sharp contraction in the global chip industry.

Intel announced earlier this year that it was investing more in a new facility in Ireland. It is understood that the company is still asking employees at the Lexlip plant whether to consider this option, but it has not enforced it.

Intel said it was a "voluntary leave program." Asked what would happen if too few or too many employees volunteered for the program, the company added: "Employees can apply and it's up to the company. "

The move comes at a time when tech companies have experienced a wave of layoffs in recent months as they look to rein in costs during the economic downturn.

Chipmakers have suffered a rapid downturn in the market, with many companies posting weak sales and profit forecasts over the past two years.

Intel warned in October that it was preparing for thousands of layoffs to cut costs by up to $10 billion by the end of 2025 in response to further reductions in demand for its chips.

Mobile chipmaker Qualcomm also cut its revenue forecast by a quarter in November as slowing consumer spending hit mobile phone sales. AMD has also warned that PC processor sales will fall 40 percent.

Intel wants its manufacturing employees to take furloughs in the first quarter of next year, but it has not disclosed how many of Lexlip's 4500 employees qualify for furloughs.

Ireland relies heavily on big tech and manufacturing companies, which contribute more than half of its corporate tax. In the first nine months of this year, Ireland's corporate tax bill totaled nearly € 14 billion, up nearly € 6 billion from the same period last year.

Many global tech giants have their European headquarters in Ireland, but Twitter, Meta, Stripe and others are likely to lay off hundreds of people there.

The Irish Investment Promotion Authority (IDA) has yet to comment on Intel's unpaid leave news. But Irish Prime Minister Micheál Martin has welcomed Intel's € 12 billion commitment to invest € 5 billion in new facilities. The new facility is expected to create another 2000 jobs.

At the same time, Martin said the investment "speaks volumes about the company's deep and ongoing commitment to Ireland." "

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