Intel Is Offering Its Irish Employees Three Months Of Voluntary Unpaid Leave

Intel is offering three months of unpaid leave to thousands of its employees in Ireland, according to reports this morning. The company plans to cut $3 billion next year to counter a sharp contraction in the global chip industry.

Intel just announced earlier this year that it was investing more in a new facility in Ireland. It is understood the company is still asking staff at the Rexlip plant whether to consider the option, but has not enforced it.

Intel said it was a "voluntary leave program." Asked what would happen if too few or too many employees volunteered to take part in the scheme, the company added: "Employees can apply and ultimately the company decides."

The move comes as major technology companies have seen a wave of layoffs in recent months as they seek to rein in costs amid the economic downturn.

Chipmakers have suffered a rapid downturn in the market, with many issuing weak sales and profit forecasts over the past two years.

Intel warned in October that it was preparing for thousands of job cuts to cut costs by as much as $10bn by the end of 2025 in response to a further drop in demand for its chips.

Qualcomm, the mobile chipmaker, also cut its revenue forecast by a quarter in November as slowing consumer spending hit handset sales. AMD also warned that its PC processor sales would fall by 40%.

Intel hopes to furlough its manufacturing staff in the first quarter of next year, but has not disclosed exactly how many of Lexlip's 4,500 employees will be eligible.

Ireland is heavily dependent on large technology and manufacturing companies, which contribute more than half of its corporate taxes. In the first nine months of this year, corporation tax in Ireland totalled almost €14bn, up almost €6bn on the same period last year.

Many global tech giants have their European headquarters in Ireland, but Twitter, Meta, Stripe and others are all likely to cut hundreds of jobs there.

The Irish Investment Promotion Agency (IDA) has not commented on Intel's furlough news. But Ireland's prime minister, Micheal Martin, had previously welcomed Intel's commitment to invest €5bn in new facilities for an additional €12bn. The new facility is expected to create another 2,000 jobs.

At the same time, Mr Martin said the investment "speaks volumes about the company's deep and continuing commitment to Ireland".