Infineon has announced it will cut 1,400 jobs, globally, and relocate a further 1,400 to countries with lower labour costs.
The German chipmaker said on Monday (5 August) that the cuts would include several hundred positions at the company’s German plant.
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Infineon’s revenue for the April-June quarter totalled €3.7bn ($4bn), a 9% decrease from the year prior and slightly short of its €3.8bn ($4.17bn) company forecast.
“The recovery in our target markets is progressing only slowly,” CEO Jochen Hanebeck said, adding: “Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand.”
The job cuts come as part of the company’s previously announced Step Up cost saving programme. Hanebeck said the programme would have a positive impact on the company’s 2025 fiscal year.
Mass layoffs across the technology industry have continued throughout 2024 following a tumultuous 2023.
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By GlobalDataIn 2023, nearly 2,000 tech companies made significant layoffs, resulting in over 260,000 tech workers out of their job by December that year.
According to online tracker, layoffs.fyi, job cuts have continued to plague the industry with over 124,517 employees laid off in 2024 already.
Duolingo, Unity Software and BenchSci were among the 13 tech companies to conduct layoffs within the first nine days of 2024 that left approximately 2,358 employees out of work.
