Infineon wants to leave Germany
Trims staff while it thinks of where to go next
Infineon Technologies will cut 900 jobs in the next few months, as the company mulls a possible exit from Germany.
Europe's second biggest chipmaker today announced the layoffs and kicked off a larger scale cost-cutting program designed to save the company $551 million. This move comes as Infineon looks to move its headquarters from Germany to possible sites in Asia, the U.S. and elsewhere in Europe.
"We have the feeling that there are probably more stable locations than the one we are currently in," Infineon Chief Executive Ulrich Schumacher said during a news conference.
The company may make its decision after its fiscal year ends in September.
Some companies are concerned about the cost of doing business in Germany and are looking to lower benefits for the unemployed and to make it easier to dismiss workers.
Infineon, like many chip makers, has suffered from the broad slump in technology spending and last week posted a net loss of 328 million euros in its first quarter.
The job cuts will affect workers at Infineon's secure mobile solutions unit in Sweden. ®