BUSINESS
Worldwide Intel cuts hit Ireland
21-02-2001
by
Intel's Irish employees will not receive the normal review and raise of salaries on 01 April of this year as the company cuts costs worldwide.
However the company has devised a plan to pay half in April and the rest in October.
"The company is looking at some short term cost cutting measures as part of this year pay raises will be paid in two slices," said Bill Reilly, public affairs manager with Intel in Ireland.
The tightening of belts by the company will not affect Intel's long term plans to invest USD2 billion in a new plant at Leixlip in Dublin which would employ an additional 1,000 people according to Reilly.
He said the company has already recruited an extra 80 staff since the start of this year and said "we will continue to recruit key technical staff." The company currently employs around 5,000 people in Ireland.
"Intel hope that the current downturn in the market is only a short term phenomenon but will keep the situation under review," he said.
Intel's Irish employees were briefed on the cost cutting measures which include cutbacks on travel and overtime for staff, Reilly said.
The company said it wants to cut discretionary spending on such items by 30 percent this year.
Intel's home PC programme, under which employees can obtain a free computer, has been delayed in Ireland. However, since the programme had started in November here, Irish employees would not be affected as much as their US counterparts, Reilly said.
Intel like other companies in the computer manufacturing sector is facing a downturn in demand for its chips this year, as demand for PCs drops in part due to recession fears in the United States.
The company announced in January that its first quarter revenues would be 15 percent down on the same period last year. Intel is laying off 1,300 people in Puerto Rico.
Capital and research budgets will not be affected by the cuts.
In 2001 the company expect to spend around expects USD7.5 billion on capital expenses and USD4.3 billion on research.
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