Infineon will cut 1,400 jobs worldwide and relocate a further 1,400 positions to countries with lower labour costs as part of the “Step Up” cost savings programme.
The cuts include the cancellation of several hundred positions at the company’s plant in the southern German city of Regensburg.
“We are ruling out forced redundancies in Germany,” Infineon CEO Jochen Hanebeck said after the company’s latest results.
Infineon, which has around 58,600 staff according to its website, has narrowed its revenue guidance to around €15 billion ($16 billion), having already twice lowered it, most recently to €15.1 billion, plus or minus €400 million.
Infineon expects to generate sales revenue of around €4.0 billion in the fourth quarter of the 2024 fiscal year.
Infineon reported revenue of €3.702 billion, down 9 percent on the year, for the April-June quarter. Net profit was €403 million.
Infineon has generated revenue of €2,112 million from Automotive, €475 million from Green Industrial Power, €749 million from Power & Sensor Systems and €366 million from Connected Secure Systems in April-June.
Infineon’s Automotive business noticed stronger demand in the area of software-defined vehicles including E/E architecture, benefitting in particular microcontrollers
Infineon’s Green Industrial Power business witnessed demand in the areas of electric buses and trucks, trains as well as home appliances.
Infineon’s Power & Sensor Systems business noted demand for components in the area of servers and data centers as well as USB controllers and silicon microphones.
Infineon’s Connected Secure Systems business said demand in the area of Wi-Fi was slightly weaker.
“The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand,” Jochen Hanebeck said.
Infineon said its capital expenditure is expected to reach around €2.8 billion in the 2024 fiscal year. The focus will be on making investment in manufacturing modules for compound semiconductors on the Kulim site (Malaysia) and for analog/mixed-signal components in Dresden (Germany).
Baburajan Kizhakedath
