Fears for jobs at Intel with ‘20% of worldwide workforce to go'
Fears are growing that hundreds of jobs could be at risk after reports yesterday that tech giant Intel is set to lay off 20% of its work force worldwide. Intel has a large presence in Ireland, employing almost 5,000 people. Its main site is in Leixlip in Co Kildare.
Cabinet ministers pushed back yesterday against suggestions that as many as 1,000 jobs could be at risk here. They pointed out that the Irish sites focus heavily on engineering, something the company's new chief executive, Lip-Bu Tan, is said to want to focus on as the company's core value.
Bloomberg reported yesterday that Intel is set to unveil plans this week to slash more than a fifth of its workforce, in a move to streamline operations and reduce bureaucratic inefficiencies, citing a person with knowledge of the matter. The Intel manufacturing plant in Collinstown Park, Leixlip, Co Kildare Pic: Colin Keegan/Collins Photo Agency
The layoffs are part of a broader strategy to refocus on an engineering-driven culture, according to the report.
The company's financial report for the first quarter of the year is due to be published today, amid a gloomy economic outlook worldwide US president Donald Trump's trade war and stated desire to return companies to the US has sparked some concerns for Ireland's multi billion-euro tech sector, which is crucial to our economy.
Intel did not immediately respond to a request for comment.
Its shares were up more than 4.5% in pre-market trading on yesterday. Enterprise Minister Peter Burke said yesterday that he had not received notice of any job cuts planned by Intel in Ireland. The company is required to provide 31 days notice of layoffs to govern ment under law. Minister for Enterprise, Tourism and Employment, Peter Burke TD
PIC: Conor Ó Mearáin / Collins Photo Agency
Mr Burke said: 'I continue to engage with Intel, supported by colleagues in IDA Ireland, ahead of the company's Q1 financial results being announced. 'We have a very strong relationship with management in Intel, both in Ireland and the US, with the company investing significantly here over the last 35 years, most recently opening Fab 34 in 2023 with an investment of €17billion.
'Ireland continues to play an important role in Intel's plans as the European hub for manufacturing semiconductors, and we don't see speculation around headcount reduction changing this. We continue to partner with Intel in areas of research and innovation and our upcoming National Semiconductor Strategy launch will further enhance this important sector.
'I appreciate speculation is very difficult for staff in Leixlip, and we will continue our engagement with management over the coming weeks and months.' The Intel manufacturing plant in Collinstown Park, Leixlip, Co Kildare Pic: Colin Keegan/Collins Photo Agency
Other Cabinet sources pushed back on speculation that 1,000 jobs could be at risk – if the 20% rate is applied equally across the global Intel workforce. 'The story seems to suggest that the new CEO wants to get back to basics and the Leixlip plant is very good at engineering,' one source said.
'They are well placed to weather this storm hopefully.' They conceded that many jobs could be lost but said it was 'scaremongering' to suggest that level of jobs could be at risk before the company had confirmed the cuts.
'There's 4,900 working there. 3,500 work in manufacturing and a good chunk of the rest are STEM design. That may be a very superficial analysis and, of course, the worst case is if there is a 20% cut across the board, that could happen. But that sounds very superficial and scaremongering.' Intel's new chief executive, Lip-Bu Tan Pic: Intel
It remains unclear if the cuts are a part of a shake-up by the incoming CEO, or indicative of a wider trend in the sector amid concerns over the Trump tariffs.
Ged Nash, Labour's finance spokesman, called on the Enterprise Minister and the company to provide as much clarity as possible as soon as possible. He also pointed out that Intel had invested upwards of €20billion in Ireland over the years and that this boded well for the company.
The layoffs would mark a major step under new CEO Mr Tan, who took over Intel last month, to revive the fal tering American firm after years of challenges and management missteps.
The Santa Clara, California-based tech giant had 108,900 employees at the end of 2024, according to a company filing.
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