Irish staff 'extremely concerned' as chipmaker Intel confirms job cuts 

Chipmaker said it plans to reduce operating costs by between $500m and $1bn next year

Some 5,000 Intel workers are based here in Ireland, concentrated primarily in the company’s campus in Leixlip, Kildare.

Intel gave a weak revenue forecast on Thursday night, which fell below Wall Street estimates, with the embattled chipmaker confirming it will be cutting staff to reduce costs.

Posting its financial results for the first three months of 2025, Intel CEO Lip Bu Tan said they were "a step in the right direction," while also confirming there will be a reduction in Intel’s workforce globally.

While no specifics around the number or location of job cuts were flagged, the company have said they plan to reduce operating costs by between $500m and $1bn next year, with cuts targeting management and non-core engineering roles. 

The latest reported cuts follow efforts by the company in August last year to slash around 15,000 jobs. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year.

Some 5,000 Intel workers are based here in Ireland, concentrated primarily in the company’s campus in Leixlip, Kildare. Around 300 employees are based at the company’s research and development base in Shannon, however, the company announced last year that it would close this facility by the end of 2025 as part of its savings plan, with staff being offered the opportunity to move to remote working.

"It is likely to be several weeks before detail is available on the impact of these cost reduction measures," said Minister for Enterprise, Trade and Employment, Peter Burke said.

"While we await further specifics on potential downsizing, which is an incredibly anxious time for Intel’s staff, it is positive that the company have stated that they will continue to focus investment on their core business, the manufacturing of semiconductor products. This is the primary activity in Ireland."

A spokesperson for Intel told The Irish Examiner that the company is working through further details to understand the local impact, adding it is expected that each Executive Team Lead will make decisions based on their business priorities.

The company, based in Santa Clara, California, said it expects revenue of $11.2bn (€9.8bn) to $12.4bn (€10.9bn) for the June quarter, compared with analysts’ average estimate of $12.82bn (€11.3bn), according to data compiled by LSEG.

Amid Mr Tan’s attempts to streamline the company and cut costs, Intel also said it is reducing its adjusted operating expense target to approximately $17bn (€14.9bn) in 2025, down from its previously stated goal of $17.5bn (€15.4bn), and is now targeting $16bn (€14.1bn) in 2026.

Mr Burke also said it was worth noting Intel's completed construction of the most advanced semiconductor manufacturing facility in Europe in Fab 34, which is now in production in Leixlip and can be central to Intel’s growth recovery strategy. 

"This €17 billion investment is just the latest in Intel’s 35-year history operating here, with the Irish government, through IDA Ireland, partnering with Intel on this journey," Mr Burke continued. 

"My thoughts remain with staff and their families, many of whom are extremely concerned. I continue to keep in touch with local management and I am meeting them again next week.

"Government continues to value our long-term partnership with Intel and will continue to work with the company as it works through its plans over the coming weeks and months, as demand for semiconductors remains strong."