May 10, 2024 /SemiMedia/ -- According to reports, affected by the continued weak demand in the semiconductor industry, Infineon recently announced an austerity measure, lowered its full-year revenue forecast and laid off employees at its Regensburg factory.

According to the austerity measure, Infineon lowered its revenue guidance for 2024 to 15.1 billion euros (approximately $16.3 billion), plus or minus 400 million euros, which is lower than the previous guidance of 16 billion euros, plus or minus 500 million euros.

Infineon said unit performance margins were also likely to be lower than forecast three months ago, at around 20%.

Infineon CEO Jochen Hanebeck said that affected by the economic situation, many end markets are weak, and customers and distributors continue to reduce inventory levels. In addition, the growth of the automotive industry has slowed significantly.

To combat this, Infineon is rolling out measures focused on production, portfolio management, pricing and operating costs. The company said these measures will have a positive impact on adjusted or segment results starting in fiscal 2025.

In addition, Infineon will cut more than a hundred jobs at its Regensburg site as part of its announced austerity measure.

A spokesman said: "On May 7, employees were informed that the changes would affect three-digit jobs in Regensburg."

However, the restructuring is expected to take place without business-related terminations and there will be no compulsory layoffs at Infineon. The company will use float, partial retirements and voluntary separations to reduce its headcount.