A large number of tech companies are cutting jobs in a bid to reduce their costs. Similarly, Intel Ireland is offering its staff to take three months of unpaid leaves. This is a voluntary time off and is part of Intel’s efforts to reduce costs.
Intel’s efforts to reduce costs
Intel has offered the option of three-month unpaid leaves to about 2,000 workers in Ireland. Moreover, this option is provided to most workers in Intel’s manufacturing business. Most of the manufacturing related workers are working at Intel’s manufacturing plant in Leixlip, County Kildare. Previously, Intel announced in October that they are planning to cut thousands of jobs across the globe. Hence, this initiative of sending workers on voluntary time off seems to be part of that strategy. Furthermore, the strategy involves saving $3 billion annually. Moreover, Intel is intending to save $8 billion to $10 billion by 2025.
“During our recent earnings call, we announced significant steps to reduce costs and improve efficiencies, while mindfully protecting the investments needed to accelerate our transformation and position us for long-term growth. Retaining our manufacturing talent is a key element of positioning Intel for long-term growth. Voluntary time off programs allow us an opportunity to reduce short-term costs and offer employees attractive time off options. Manufacturing talent represents an important element of our business here in Ireland.” Intel told in a statement to Irish Examiner.
Intel will continue to grow in Ireland
Intel is facing the crisis of reduction PC sales globally and this has affected its business outlook. Surprisingly, the chip maker giant witnessed a 20 percent drop in its year to year sales. Hence, they have come up with this decision of cutting jobs. On the other hand, the current announcement of sending people on unpaid leaves will not affect Intel’s long-term investments in Ireland. In March Intel announced that it was investing a further €12billion into its operations in Ireland. Moreover, the company has pledged to invest an overall €30 billion at its site in Leixlip.
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