August 6, 2024 /SemiMedia/ -- Infineon Technologies said yesterday that as part of its previously announced cost-saving plan, it will cut 1,400 jobs worldwide and relocate another 1,400 positions to countries with lower labor costs!

The cuts include the elimination of hundreds of positions at the company's plant in the southern German city of Regensburg, which was announced earlier.

"We are ruling out compulsory layoffs in Germany," said Infineon CEO Jochen Hanebeck.

Infineon Technologies reported a 9.5% year-on-year decline in third-quarter revenue to 3.702 billion euros ($4.04 billion), below the company's 3.8 billion euro forecast, but thanks to growth in the power and sensor systems divisions, third-quarter revenue increased 2% from the previous quarter. The division's performance increased 4% quarter-on-quarter to 734 million euros, with a profit margin of 19.8%, higher than expected.

“The recovery in our target markets is progressing slowly. The prolonged weak economic momentum has led to inventory levels in many regions that exceed end demand,” said Jochen Hanebeck. “In addition to managing the current demand cycle, we are also working hard to further strengthen our competitiveness.”

"Infineon continues to maintain its good momentum in a still challenging market environment," said Jochen Hanebeck, adding that the company is further strengthening its competitiveness through the cost-saving program announced earlier this year.