Intel is to slow down construction work at its latest semiconductor facility in Leixlip, Co Kildare, for the rest of this year in order to save on costs. Up to 1,400 construction workers will be laid off as a result.
According to a spokesperson for the Construction Industry Federation, PJ Hegarty is the main contracter on the site, and it will be trying to redeploy workers taken off the project.
The spokesperson said that some workers may not be redeployed, but given the buoyant state of the building sector and the high mobility of construction workers, he was confident the impact would not be grave.
Intel, which employs 3,500 at Leixlip, says production is well ahead of the target for production start-up in mid-2003 and will be accelerated again next year.
The company said it was not cutting back on the $2 billion overall investment in the new facility, but was spreading it over a longer period of time. The Fab 24 project is expected to create over 1,000 new jobs by 2004.
The chip maker last week warned of lower profits and announced 5,000 worldwide job cuts. Intel Ireland's public affairs manager Bill Riley said these cuts would have only a minor impact in Ireland, and any reductions would be achieved through the non-replacement of staff.
