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Infineon to lose 10% of workforce
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25/07/2008
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Infineon to lose 10% of workforce
In a move to save up to €200million a year, Infineon is implementing a cost reduction program which, amongst other things, will see around 3000 employees losing their jobs, around 10% of its workforce.
Infineon’s revenues in the third quarter of the 2008 fiscal year were €1.029billion, up 2% year over year. However, once losses and write charges associated with memory subsidiary Qimonda were factored in, the company lost €592million in the quarter.
According to Infineon ceo Peter Bauer, pictured: “We expect to realise at least €200m in annualised savings that should pave the way for continued profitability.”
The cost reduction program will slim its product portfolio, reduce manufacturing costs and improve efficiencies. Infineon will also reorganise into five divisions: automotive; chipcard and security; industrial and multimarket; wireline communications; and wireless solutions.
Meanwhile, Qimonda reported a third quarter loss of €386m, with sales of €386m – 48% lower than the same period of 2007.
“We have reduced our loss in the third quarter and have made significant progress with our productivity improvement and cost reduction program,” said Kin Wah Loh, Qimonda’s president and ceo. “We have converted almost 90% of our capacity to 80nm and 75nm. The introduction of our first 1Gbit DDR2 based on 65nm buried wordline technology in September 2008 is on track, and we have already achieved Intel validation for this chip on the component level.”
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Author
Graham Pitcher
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