Intel Ireland has said it is not commenting on media reports that the company is to slash more than 20% of its global workforce, with a spokesperson calling the reports "rumour and speculation".
It comes after Bloomberg New reported that Intel is to unveil plans this week to reduce its workforce in a move to streamline operations and reduce bureaucratic inefficiencies, citing a person familiar with the matter.
The layoffs are part of a broader strategy to refocus on an engineering-driven culture, the report said.
A spokesperson for Intel Ireland said that the company is not commenting on the Bloomberg report "as it is rumour and speculation."
The Santa Clara, California-based company had 108,900 employees around the world at the end of 2024, including 4,900 people in Lexilip in Co Kildare.
Intel also has a plant in Shannon, Co Clare with employs about 300 people but the company said last September it would close the Clare plant by the third quarter of this year.
Minister for Enterprise, Tourism and Employment Peter Burke said he continued to engage with Intel, supported by IDA Ireland, ahead of the announcement of the company's Q1 financial results tomorrow.
"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 €17 billion," he said.
He added: "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."
The minister said he appreciated the speculation was difficult for staff in Leixlip and said he would continue to engage with management over the coming weeks and months.
The reported layoffs mark the first major move under new CEO Lip-Bu Tan, who took over last month to revive the struggling Silicon Valley chipmaker after years of challenges.
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Last month, Reuters reported that Mr Tan was considering significant changes to its chip manufacturing methods and artificial intelligence strategies.
The new trajectory involved restructuring Intel's AI strategy and implementing staff cuts to address what he described as a slow-moving and bloated middle management layer.
Shortly after his appointment, he told employees in a town hall that the company will have to make "tough decisions."
Last week, Reuters reported that Mr Tan was restructuring the company by flattening its leadership team, with key chip groups now reporting directly to him.
The planned layoffs follow a significant reduction in workforce last August, when Intel said it planned to cut 15% of its jobs, or approximately 15,000 positions.
The job cuts in 2024, part of a $10 billion cost-reduction plan aimed for this year, were driven by high costs, shrinking margins in Intel's core PC and data center segments, and an expensive pivot to AI chips - an area where Intel has trailed competitors such as Nvidia.
The chipmaker is scheduled to report its first-quarter results tomorrow.
Minister for Further and Higher Education, Research, Innovation and Science James Lawless said Intel's Kildare base was "well placed" to deal with any changes at the company, describing the reports of job cuts at the company as "rumour and speculation" at present.
Mr Lawless said that he was due to meet the team at Intel in ten days' time and said that of the 4,900 staff there, 3,500 are in advanced manufacturing and engineering.
"Leixlip is well placed as it's already focused on engineering, chip design and advanced manufacturing, also the Intel Foundry is based at Leixlip," he stated.
He said the company spent €17 billion in 2022 to expand its Kildare plant, and is still continuing to expand as it has done for many years.
He said that he would continue to be confident and positive about Intel's operations in Ireland, adding that the Government is committed to supporting the sector.
Social Democrats TD Aidan Farrelly says it is important not to fuel rumours about staff cuts when the full details have not been released yet.
"We’ve had these reports before, at these quarters or every six months. We see the costings that come out from Intel and the speculation starts, the rumour mill starts. We shouldn’t add to that. We shouldn’t add fear to that," he said on RTÉ’s News at One.
Mr Farrelly described Intel as "part of the fabric of north Kildare" and said job losses would impact the wider mid-eastern region.
He said that communication was needed from Minister Burke to put the workers’ minds at ease.
"I was in communications with both Intel and the minister’s office, seeking clarification, because ultimately that’s what people want today. They want details, they want to see what the future holds.
"Until we see that detail from him, we can’t know any more. Hopefully it won’t be long until the minister outlines what he knows, but also what plans are in place for any organisation like this going through potential changes," he said.
Mr Farrelly said substantial investment in the Leixlip site by Intel recently was giving staff hope that cuts may not be as bad as first feared.
"When you speak to people on the ground, who are those standing to be most affected by this, that gives them hope.
"But also, they are aware of the international context too. When we don’t have detail, that’s what leads to speculation and rumours to become worse," he said.
"At this point, while we do have hope, and we’ve seen very impressive commitment from Intel on the site in Leixlip in recent years, and we do have a workforce doing incredible work, what we need now is detail," he added.
