Intel is reportedly offering voluntary severance packages of up to 500,000 euros to its employees in Ireland.
According to Business Post, this severance package is initially being rolled out to employees at the company’s Leixlip branch. An email notification was sent out last week, allowing employees to register with a deadline set for August 23rd.
Under the proposed terms, employees with over two years of service can receive five weeks’ pay for each year of employment. Those with less than two years of service are eligible for 2-5 weeks’ pay if they opt to leave. Irish labor law mandates a minimum payment of two weeks’ pay for each year worked.
Some may receive up to the maximum package of 500,000 euros (approximately 546,772 USD) if they register and are approved by Intel. Participants in the program will be notified of their results by September 6th, with their final day at the company set for September 30th.
Currently, Intel employs 4,900 people in Ireland. As reported by Tom’s Hardware, if the company proceeds with a 15% workforce reduction at this location, around 730 employees could be let go. Should voluntary registrations fall short, Intel may resort to mandatory layoffs.
Intel declined to comment, and it remains unclear how severance packages will be implemented at other locations.
Earlier in August, Intel announced plans to reduce its workforce by more than 15%. The company had 116,500 global employees as of June 29th, excluding some subsidiaries. The workforce adjustments are expected to be completed by the end of the year. In a statement to The Verge, Intel indicated that the reduction would exceed 15,000 jobs. Reuters estimates that 15% equates to 17,500 employees, while The Verge suggests that up to 19,000 workers could be affected.
Intel is currently undergoing a restructuring process focused on advancing AI processor development. Recently, the American chipmaker has been outpaced by competitors like Nvidia and faced challenges to its dominance from AMD. In semiconductor manufacturing, the company is pushing to reclaim the technological edge it lost to TSMC, the world’s largest contract chipmaker.
