Intel, one of the state's largest employers, is cutting 10,500 worldwide jobs, but it is believed the effects in Ireland will be minimal. Intel has an Irish workforce of 5,500 here - in Leixlip and Shannon.
Intel's latest set of results show that profit declined by 57% and it was under pressure from Wall Street to see how it would halt the fall in profit. Intel says it expects savings from the restructuring to reach $3 billion in 2008.
Most of the cuts announced last night are in management, marketing and information technology and will not affect Ireland.
However, next year the company will be looking for reductions in manufacturing. That will include operations here but will only affect about 3% of the workforce. That would equate to approximately 150 people out of 5,500.
In the past any cuts at Intel Ireland have been made by leaving positions vacant and voluntary redundancy and that is likely to be the position in future.
Of the 10,500 job cuts announced yesterday, Intel has already cut 5,000 through natural attrition, laying off 1,000 managers in July and 2,000 workers in two business units that it sold. It will cut another 2,000 jobs this year, and 3,000 jobs in the fist six months of next year to be spread across its global operations.
Intel CEO Paul Otellini said the number of employees will decline to 95,000 by the end of 2007 and will fall to 92,000 by the middle of 2007 - 10,500 fewer than the amount of employees in April 2006.
'These actions, while difficult, are essential to Intel becoming a more agile and efficient company, not just for this year or the next, but for years to come,' said Mr Otellini in a briefing to staff.
The company has been facing stiff competition from rival chip maker Advanced Micro Devices (AMD). In the company's second quarter financial results in April, Mr Otellini predicted Intel's first sales drop in five years and management said the company was unlikely to meet its 2006 sales forecasts.
Intel said that it expects to incur about $200m in total severance costs. The company said further information will be provided in quarterly earnings releases.
Ireland has not previously been the target of Intel rationalisations. The company shed 5,000 employees in 2001, but only 170 - all voluntary - came from Ireland. Ireland was also unaffected by a further 4,000 job cuts in 2002.
There are currently 5,500 people employed directly and indirectly at the Intel Ireland facility. There is also another 150 people employed at Intel Communications Europe in Shannon, Co Clare.
