Intel to seek almost 200 mandatory redundancies at Leixlip plant

Almost 200 mandatory redundancies are expected this autumn at the Intel plant in Leixlip, Co Kildare, according to people briefed on the situation.

The company is undergoing a major restructuring at the moment but it is understood that the plant, where almost 5,000 people are employed, will remain central to the company’s operations.

However, it will not be immune to job losses, and there are expectations that some 195 positions – under five per cent of the workforce at the plant – will be cut.

The company has informed the Department of Trade, Enterprise and Employment about the move. A consultation process is expected to begin shortly.

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With reports earlier this year that the company was going to cut up to 20 per cent of its global workforce, there were fears that the cuts could have been much greater.

One source noted that with the company have signalled global job cuts and having paused investments in the US and Germany, Ireland was lucky that it had the part of the business that is considered core to its future survival.

It is expected that once the company has made the announcement, it will enter into a consultative period with staff over the coming months, with posts identified by September.

Intel appointed a new chief executive, Lip-Bu Tan, earlier this year in an attempt to revive the struggling chipmaker after years of difficulties.

One of Mr Tan’s early moves was to tell staff that “tough decisions” would be required to turn around the company’s fortunes.

Intel Ireland did not comment on the exact number of jobs it expects to cut from the organisation.

“As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company,” a spokeswoman for Intel said. “We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work.”

Intel already cut 15,000 jobs last year as the company struggled to right itself. The once-dominant chipmaker has fallen behind rivals in capitalising on mobile and AI focused silicon.

Mr Tan is trying to reduce layers of management in the company that have built up over the years, rebuilding an engineering-driven culture.

He is also planning more changes. From September, staff will be expected to attend the office four days a week, up from the current three, as he seeks to change the company culture.

“Our existing policy is that our hybrid employees should spend approximately three days per week on site,” Mr Tan said. “Adherence to this policy has been uneven at best. I strongly believe that our sites need to be vibrant hubs of collaboration that reflect our culture in action.”

Mr Tan also paused major spending plans, including a big chip factory in Ohio, and said he would spin off any business that is not core to the company.

In a statement, the local Fine Gael TD Joe Neville said: “Intel has given major employment to my home town of Leixlip and the surrounding areas since I was a child and is key partner in all that we do in this area for so many groups.

“Since 2017 the company has invested in a new multi-billion processing facility which is a positive investment but everything now must be done to support the staff and family of those impacted and who may be seeking alternative employment with this announcement.”

Intel only has a small number of union members working at the company itself and for contractors on site.

Connect, which represents skilled craft workers including electricians, plumbers and fitters, was unaware of whether any of its members would be affected.

“Any job losses are a blow, though, and we hope these are the last before things start to pick up for Intel again because it is a very important player for Ireland,” said assistant general secretary Brian Nolan.

It is not clear yet whether redundancy terms will match those of last year when staff were understood to have received five weeks’ pay for each year of service plus two weeks’ statutory redundancy, with a cap of 104 weeks or €500,000, whichever was lower.

Intel has recently sought to outsource some functions and it is possible some of the job losses will be mitigated by the creation of new roles among contracting firms.