Munich, August 17: Infineon Technologies, a global semiconductor manufacturer located in Neubiberg in Munich district in Germany, has announced to lay off 1,400 employees worldwide after it missed the third-quarter revenue expectations. The Infineon layoffs will likely affect the people working in Regensburg, a city in Germany. After Intel layoffs, this will shock the global tech industry as tech company is reducing its workforce due to sluggish demand and missed revenue opportunities. 

According to various reports, Infineon CEO Jochen Hanebeck announced that the company would be laying off around 1,400 people in its latest round. The reports said the chipmaker had adjusted the entire year's revenue once it missed its opportunity to earn expected revenues in Q3 2024. Infineon Technologies is now aiming to have around Euro 15 billion (around USD 16 billion) as a full-year revenue. Intel Layoffs Begin Today in Israel, Tech Giant’s ‘Biggest-Streaming Plan’ Estimated To Hit Around 17,000 Global Workforce: Report.

Beyond the Infineon layoffs, the company reportedly would offshore the same number of employees to low-wage countries likely to bring down the cost. The third quarter of the fiscal year reportedly hinted that Infineon was coming out of the crisis; however, it witnessed a slight increase in revenue and earnings as compared to the second quarter. 

Infineon CEO Jochen Hanebeck did not specify the locations where the job cuts or relocations would be implemented. Further, he ruled out that the layoffs in Germany were announced due to operational reasons. The reports said that Infineon layoffs were implemented due to weak demand, as were the other semiconductor companies in the industry. Despite cutting the jobs at Regensburg, the CEO said that it would remain "a central site" and the company would create more jobs at the location. Global Financial Crisis 2024: Apple and Its Suppliers’ Stock Slump, Google, Tesla, Microsoft, Meta, Amazon and Others Show 10%-11% Decline in Last 24 Hours.

The reports said that the semiconductor company suffered due to weaker product demand. Jochen Hanebeck said that the market was challenging, but the company would proceed to its target slowly. The company's revenue fell short and achieved Euro 3.7 billion and would aim for a Euro 4 billion revenue in the fourth quarter. Despite facing the challenges, German chipmakers witnessed a good performance in the stock market.

(The above story first appeared on LatestLY on Aug 05, 2024 06:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).