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Intel plans to cut over 20% of its global workforce, according to recent reports, which may affect some of the 4,900 workers at the company’s chip manufacturing plant in Leixlip.
News of the expected cuts was first reported by Bloomberg News yesterday, who referenced a single anonymous source with knowledge on the matter.
The potential move follows a previous 15% workforce reduction in August 2024, part of a $10 billion cost-saving initiative by Intel.
A worker employed at the Leixlip site told The Journal that staff had initially found out about the potential cuts yesterday through media coverage.
“It was the same the last time there were cuts,” the worker, who asked to remain anonymous, said.
“We have questioned management and they know nothing. Nobody knows anything here”.
They added that they “kind of expected this would come at some stage”, explaining that the new Intel CEO Lip-Bu Tan had announced plans to shake up the company after his appointment last month.
There’s speculation the job cuts could be announced in the next 24 hours. Intel is set to reveal its quarterly earnings report at 10pm this evening, Irish time.
Though the worst of Intel’s revenue declines are now behind it, according to Wall Street estimates, analysts aren’t projecting a return to its previous sales levels for years, if ever.
Intel’s stock is down 40% in the past year, closing at $19.51 (€17.12) on Tuesday.
The company’s first-quarter revenue for last year was valued at $12.7 billion (€11.15 billion), up 9% on the previous year. The 2025 Q1 revenue is expected to hover around the same figure.
Local councillor Bernard Caldwell told The Journal that councillors are set to meet with representatives from Intel next week to discuss the impact of the cuts on the community, among other issues.
He said that Intel workers in Leixlip have not heard any news of layoffs yet, and they are unsure if there will be a major impact on the company’s Irish employees.
“I’d be really surprised if that’s the case,” Caldwell said.
“They’re quite good for the surrounding area,” he added, referencing the company’s financial sponsorships of several local sporting organisations and schools.
The government is currently in contact with Intel to assess the situation.
Further and Higher Education Minister James Lawless, who is also a local TD, said he was confident that the Leixlip operation was well-placed to withstand current challenges.
“The Leixlip operation has been in being since 1989 and as recently as 2022, a further €17 billion was committed to expanding the range plant there,” Lawless said yesterday.
“The focus of the Irish operation is in engineering, advanced manufacturing and chip design, these are all critical areas for the company’s future and ones I fully support.”
Lawless added that it appears Intel’s focus is on “trimming non-core activities”.
“I would suggest the Leixlip workforce is less threatened by that pivot than other locations may be, given the engineering intensive focus of its activity here.”
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