Intel confirms 294 compulsory redundancies in Leixlip

Almost three hundred jobs are to go at Intel in Leixlip, Co Kildare.

The computer giant confirmed this evening that 294 positions will be lost.

The compulsory redundancies are being blamed on a fall in demand for the computer giant’s products.

Intel employs around 5,000 people in Ireland.

In a statement Intel said: “The employees and company will engage in a process of consultation over the next number of weeks to determine which employees will be specifically affected by this action.

“The affected employees will be given the same severance package that was on offer in the voluntary program earlier this year.

“At this difficult time, Intel management will be working closely with all affected employees to provide support and assistance.”

The company said it regretted the losses which it claimed were driven by a fall-off in demand for older products produced at the Co Kildare site, but will not affect workers assigned to more advanced products.

Fears had circulated among staff at the plant in recent weeks after management held briefings explaining levels of demands for Job cuts.

Question marks also remain about the competitiveness of the Irish operation compared to Intel other international operations.

Emmet Stagg, Kildare North TD, claimed the lay-offs will deal a significant blow to the area.

“The loss of spending power will be a serious economic blow to the North Kildare/ West Dublin area,” Mr Stagg said.

The local TD said on top of the job losses the cuts will cost the Exchequer around €10m in terms of lost tax revenue and additional social welfare payments.

“We simply cannot continue to afford the loss of jobs at this rate. Unfortunately the Government appears to have totally thrown in the towel on job protection and appears content to allow the Live Register to head for half a million,” he said.

In January Intel revealed plans to slash its worldwide workforce by up to 6,000 and shut down five factories in the US, the Philippines and Malaysia.

The US computer chip maker is the most important employer in the region and is widely regarded as one of the country’s most valuable businesses.

Intel said it has invested more than €6m in the Co Kildare plant over the last 20 years.

“Intel remains strongly committed to its operations in Ireland,” the company statement added.