The logo of Infineon on a roof of a building on the Campeon, headquarters of Infineon Technologies AG, German semiconductor manufacturer, on January 25th, 2024 in Neubiberg. picture alliance/dpa | Matthias Balk
On Tuesday, after weak figures, Infineon lowered its forecast for the current year and announced the savings program – but without giving any details.
The semiconductor company has now confirmed the first job cuts. It’s about hundreds of jobs.
“The workforce was informed on May 7th that the changes would affect a mid-three-digit number of jobs in Regensburg,” said a spokesman. However, the conversion should take place without any redundancies for operational reasons.
In recent years, Infineon has recorded positive business development and an optimistic mood. The chip giant benefited from increasing global demand for specialized semiconductors, which are now widely used in numerous products. But now they face challenges. For the second time in quick succession, CEO Jochen Hanebeck had to adjust the forecasts downwards. The last quarter saw a decline in profits and a decline in sales.
In response, chip manufacturer Infineon, which has been expanding for a long time, is suddenly planning cost savings. Hanebeck announced this Tuesday, May 7, a company-wide program called “Step Up” aimed at “improving the cost structure”. Details were only sparsely given. The first job cuts as part of the announced austerity program have now been confirmed.
In Regensburg, a mid-three-digit number of jobs will be lost
Accordingly, hundreds of jobs will be lost in Regensburg. “The workforce was informed on May 7th that the changes would affect a mid-three-digit number of jobs in Regensburg,” said a spokesman. However, the conversion should take place without any redundancies for operational reasons. But how then? Through natural fluctuation, partial retirement and voluntary termination agreements, according to the company.
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This initiative is expected to save a significant three-digit million amount annually. The impact is expected to be felt in the coming financial year, with full effect until 2027. “There could be an impact on jobs in certain areas,” a spokesman said “Süddeutsche Zeitung”, but emphasized that this is not a unilateral workforce reduction program. In the medium term, the group will continue to create jobs.
The planned new building in Dresden remains unaffected by the new cost-cutting measures
The plans to build new production facilities, particularly in Dresden and Kulim in Malaysia, remained unchanged, explained Hanebeck. A new factory is currently being built in Saxony for around five billion euros, of which around one billion euros is government funding. In Dresden, 1,000 new jobs are to be created directly in the factory and more in the surrounding area. Sales of business units or closures are not planned.
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Hanebeck spoke of an overall “persistently difficult market environment,” the “Süddeutsche Zeitung” quoted him as saying. In the second quarter, Infineon achieved a profit of 394 million euros, less than half of the same period last year. Sales fell by almost half a billion to 3.6 billion euros. As a supplier to the automotive industry, the company is also feeling the general lull in electric cars. “Many end markets are developing weakly due to the economy, and the reduction in semiconductor inventories among customers and distributors is continuing,” said the CEO to the “Süddeutsche Zeitung”. There is also a “noticeable slowdown in growth in the automotive sector”.
Infineon employs almost 60,000 people worldwide. The group was created almost 25 years ago from a spin-off from Siemens. For the current financial year, the company expects sales of 15.1 billion euros. This corresponds to a correction of 900 million euros compared to the previous estimates a quarter ago.
With material from dpa/jel
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The President emphasized that he is personally very careful to make the investment environment attractive for business and direct investment
– 2024-05-08 11:41:20
The President of the Republic Vahagn Khachaturyan met with the businessmen of the Eastern Commission of the German Economy at the Embassy of the Republic of Armenia in Berlin.
During the meeting, President Vahagn Khachaturyan spoke in detail about the features of the Armenian economic life and the possibilities of the liberal economy.
The President emphasized that he is personally very careful to make the investment environment attractive for business and direct investments. In this regard, Vahagn Khachaturyan referred to the significant increase in direct investments made in Armenia over the last year, as well as the influx of businessmen from a number of countries.
The President of the Republic emphasized that the interest of foreign entrepreneurs and organizations in doing business in Armenia is also a result of the attractive environment necessary for business in the country and the introduction of simplified bureaucratic mechanisms.
During the meeting, President Vahagn Khachaturyan referred to the general situation prevailing in the South Caucasus region and its influence on the economic life of the countries of the region.
Answering the questions of the attendees in a direct atmosphere, the president presented details on the features of Armenia’s energy security, operation of the nuclear power plant and energy resources.
During the conversation, ideas were exchanged regarding the obstacles and opportunities in Armenia’s relations with countries that have interests in the region, as well as Armenia’s involvement in communication channels of macroeconomic importance.
At the end of the meeting, the President of the Republic expressed his hope to meet the businessmen again in the near future, already in Armenia and discuss subject projects, expressing his willingness to support their investment initiatives as much as possible.
Gaza: Conflicting messages from Israel on Rafah – Negotiations intensify in Cairo – Netanyahu is negative
– 2024-05-08 10:27:47
Israel has assured the United States that its military operation in Rafah is of “limited” scale and duration and is aimed at cutting off arms supplies to Hamas, a White House spokesman said today.
But at the same time Israel’s Defense Minister warned today that the army is ready to “intensify” its military operations against Hamas throughout the Gaza Strip.
John Kirby, the White House National Security Council spokesman, reiterated that Washington remains opposed to a “major” ground attack on Rafah and wants to reopen “as soon as possible” the humanitarian aid crossing point on the Egyptian border, the which has been closed by the Israeli army.
It is noted that in Rafah, an area the size of a small city, more than 1.2 million people have gathered and the UN has warned of a humanitarian disaster.
Kirby said he hoped a final deal would be reached “very soon” between Israel and Hamas during talks in Cairo, Egypt.
Threats of more military operations
Israel’s defense minister warned today that the army is ready to “intensify” its military operations if there is no progress on the release of hostages held in Palestinian territory.
“We are ready to compromise to bring back the hostages, but if we have no other choice, we will intensify the operation throughout the Strip – in the south, in the center and in the north,” Yoav Gallad said amid negotiations in Cairo, where Israel sent a delegation after weeks of fruitless talks.
The agreement should mainly concern the exchange of Palestinians held by Israel for hostages held in the Gaza Strip by Palestinian armed movements following the October 7 attack by Hamas on Israel.
Israel will continue its operation in the southern Gaza Strip town of Rafah until Hamas forces in the area are destroyed or the Islamist movement hands over Israeli hostages it continues to hold, the defense minister added.
Netanyahu is negative
Israeli Prime Minister Benjamin Netanyahu said today that the latest truce proposal accepted by the Islamist Palestinian group Hamas falls far short of Israel’s basic demands, adding that military pressure remains necessary for the return of hostages held in Gaza.
Israeli forces earlier took control of the Palestinian side of the Rafah border crossing between Egypt and the Gaza Strip, a development Netanyahu described as “a very important step towards destroying the remaining military capabilities of Hamas.”
Negotiations
A group of Israeli officials is traveling to Cairo to assess whether Hamas can be persuaded to make changes to its latest truce proposal, a senior Israeli official said today, reiterating that the current proposal is not acceptable to Israel.
“This mission consists of mid-level agents. If there is possibly a credible agreement, the top officials will lead the mission,” the official told Reuters, referring to senior officials from the Mossad and Shin Bet intelligence agencies, which head the Israeli side.
A delegation of Hamas arrived in Cairo today from Doha, Qatar to continue negotiations, the Palestinian organization said in a statement.
At the same time, Hamas official Osama Hamdan warned during a press conference in Beirut that if Israel’s military offensive in Rafah continues, there will be no ceasefire agreement.
At the same time, the Egyptian media Al-Qahera News which is close to the intelligence services reported that the mediators of Egypt, Qatar and the US are holding talks today in Cairo with the Palestinian Islamist movement Hamas with the aim of a truce in the Gaza Strip.
“The delegations of Qatar and the United States are continuing their talks with the Egyptian delegation and the Hamas delegation” to discuss the ceasefire, Egyptian media reported, citing a “senior official” who did not mention the presence Israeli delegation.
The negotiations in Cairo are taking place as Israeli tanks took control of the Palestinian side of the Rafah border crossing between Egypt and Gaza.
Israeli jets are shelling the eastern part of Rafah, the southern Gaza city where more than 1 million Palestinians displaced by the war have taken refuge.
Hamas issued a statement saying the operation was designed to undermine efforts to reach a ceasefire.
The truce proposal
The agreement that appears to have been accepted by Hamas is for a phased ceasefire and the release of hostages.
The new proposal would not allow Israel to veto the release of specific Palestinian prisoners, including Marwan Barghouti, a Fatah leader serving a life sentence.
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