A surprise announcement from Intel Ireland yesterday will lead to the loss of 200 jobs in its Leixlip, Co. Kildare manufacturing plant by the end of the year.  The redundancies will be voluntary and statutory entitlements and pay packages are in the pipeline for those who are laid off. 

The job cuts are to be made from its manufacturing, support services and fabrication divisions.  Intel currently employs over 5,000 workers in Leixlip, but has emphasised that the company is still very much committed to its Irish location.

While the Leixlip plant has been immune to job cuts since the company’s installation in 1989, this announcement has made it clear that the company’s decision is based on a need to remain competitive within the industry.  Pressure in recent years from AMD, its major rival, has led to operating cost cuts for Intel, and this news of cuts in Intel’s largest computer chip plant outside the U.S. could well be a result of this.

Update: September 24th, 2007

The Intel Ireland saga continued at the weekend with rumors abounding that the voluntary redundancies will total more than the reported 200 (http://www.ireland.com/newspaper/finance/2007/0922/1190324527771.html - login required).  This speculation was strengthened by a report that the company plans to cut 10% of its IT-based workforce (http://www.theinquirer.net/?article=42554 ).

By Síle Mc Mahon