At a recent Credit Suisse conference, Intel CFO David Zinsner reiterated that the company aims to reduce costs by $3 billion by 2023. Of course, this will not avoid staff cuts. That the savings are not always achieved through direct layoffs can be seen from Intel’s actions in Ireland. Up to 2,000 local employees of the company will go on unpaid long-term leave.
The agency announced Reuters with reference to the economic mail. Following Intel’s management decision, local employees at the manufacturing company were asked to take three-month unpaid leave, according to a source. Intel representatives emphasized that this practice allows, on the one hand, to reduce the company’s costs for a certain period of time, and on the other hand, to keep valuable production personnel. Participation in this program is voluntary. Apparently, out of 5,000 people, about 40% said they were willing to devote three months of their life to other activities.
Formally, the Intel site in Ireland is the company’s only functioning manufacturing center in Europe. Under Patrick Gelsinger, it was decided to invest here up to 17 billion euros and master the Intel 4 process technology, which is a conditional analogue of the 7nm technology of competitors. How Intel’s decision to put a significant part of the Irish company’s workforce on extended leave will affect the company’s plans to master the production of advanced technology chips in Europe is still difficult to say. Some automotive components are also manufactured here using Intel 16 process technology, and many participants in the automotive market keep repeating that the chip shortage in this industry has not yet been defeated, so their interests may suffer from this Intel decision.