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Intel to inform Irish staff of possible cuts

Last month Intel announced that it would be reducing its global workforce by 12,000
Last month Intel announced that it would be reducing its global workforce by 12,000

Intel is expected to begin informing staff in Ireland about its plans to reduce its workforce here.

Two weeks ago the company announced that it would be cutting its 100,000-strong workforce around the world by 12,000, as it adapts to the shift in the market away from PCs.

Last week it informed its 5,500 staff here in an email that its Irish operations will be impacted by the job reductions.

It said managers would endeavour to communicate with staff within 72 hours of 4 May, with those on a particular shift receiving the news on the evening of 3 May due to timing issues.

The email said decisions on project cancellations and group specific co-location or program efficiencies are under way and each business will communicate their decisions over the next 60 days.

As a result it is thought it could be several weeks before the full extent of the cutbacks to the Irish operations are known.

Intel currently employs 4,500 people at its manufacturing campus in Leixlip, with the remainder spread across its security business in Cork and its research and development labs in Shannon.

Two years ago the company revealed it was in the process of spending $5bn (over €4bn) on upgrading the Leixlip manufacturing operation.

That work is now complete and the plant is producing 14 nanometre chip technology.

The changes have been prompted by shifts in the computing market, with a movement away from traditional PCs to mobile, the 'Internet of Things' and cloud computing.

While Intel is widely perceived to have missed out on many of the opportunities created by the rapid growth of the mobile market, it is well positioned to take advantage of the explosion of the 'Internet of Things' and cloud markets, with Irish operations heavily involved in both segments.