German Tech Giant to Cut Jobs In Austria

German Tech Giant to Cut Jobs In Austria

Infineon Austria’s Linz branch (Source: Infineon Technologies AG)
Infineon Austria’s Linz branch (Source: Infineon Technologies AG)

Infineon Technologies, a global leader in semiconductor solutions, is implementing cost-saving measures that will result in job reductions at its Austrian subsidiary.

The company announced that 380 out of 6,000 positions in Austria will be eliminated over the next two years as part of a broader savings program introduced by the German parent company in May. Infineon operates a significant plant in Villach, Austria, where these changes will take place. The company aims to improve efficiency and reduce complexity through various measures, including staffing-related. Rather than resorting to forced layoffs, Infineon plans to rely on part-time retirement, natural attrition, and retirements in consultation with the works council.

“This decision is not easy for me and my fellow board members. We are conscious of our social responsibility, which is why it is important for us to find solutions for the planned steps collaboratively,” said CEO Sabine Herlitschka in a statement.

On a broader scale, the German parent company has announced that it will cut 1,400 of its approximately 58,600 jobs as part of the spring’s savings initiative. Additionally, 1,400 jobs will be relocated to countries with lower labor costs.

These announcements follow the company’s recent publication of weak sales figures attributed to delayed deliveries, prompting a narrowing of its sales forecast. The current reporting season has seen several technology companies report disappointing business results, with the industry suffering from sluggish economic conditions.

 

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