The German micro-chip manufacturer Infineon has announced plans to cut or relocate a total of 2,800 jobs. The measures are part of a programme outlined several months ago.
In all 1,400 jobs are will be lost. This includes a mid three-digit figure at the company's site at Regensburg in Bavaria, which had already been released.
Infineon says it also intends to relocate 1,400 jobs to cheaper locations. This affects all "high-wage countries" from North America to Asia, said chief executive Jochen Hanebeck, with the jobs moving to more favourable countries in which Infineon is already active.
Infineon has yet to reveal where exactly the remaining jobs will be lost or relocated, with management saying they will inform workers before they make the details public. Compulsory redundancies in Germany have been ruled out, however.
The measures were "a difficult step" that the management had "not taken lightly," Hanebeck said.
Infineon is currently suffering from weaker demand for its products, a problem that is being felt across the industry.
The firm reported that its third-quarter profit fell 52% to €403 million ($440 million) from last year's €831 million. In the third quarter, Infineon's generated Group revenue dropped 9% to €3.70 billion from last year's €4.09 billion. For the fourth quarter, the company projects revenue of around €4.0 billion.
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