Infineon Technologies, a leading German semiconductor manufacturer, has announced plans to cut 1,400 jobs globally due to disappointing financial results and a challenging market environment. This move comes as the company reported a sharp decline in its third-quarter earnings for fiscal year 2024, with revenue falling to €3.7 billion, down approximately 9% from the previous year. Net profits also dropped by more than 50%, reaching €403 million.
The job cuts are part of a broader cost-saving initiative as Infineon adjusts its operations to cope with reduced demand in the semiconductor market, particularly within the automotive industry, a key sector for the company. The layoffs will include the elimination of positions at its Regensburg site in Germany, and the relocation of around 1,400 jobs from high-wage countries to regions with lower operational costs. Despite these cuts, Infineon has not planned any compulsory redundancies in Germany, though details on how these reductions will be distributed globally remain unclear.
This decision reflects the wider challenges faced by the semiconductor industry, which has seen a slowdown after a period of high demand driven by the pandemic. Infineon has now lowered its revenue forecast for the third time, projecting a total of €15 billion for the full fiscal year, down from earlier expectations of €16 billion.
Infineon’s announcement follows a similar move by Intel, which recently disclosed plans to reduce its workforce by 15% as part of a strategy to save $10 billion in costs. These developments underscore the ongoing struggles within the tech industry as companies adapt to changing economic conditions and market dynamics.