German electronics giant Infineon faces tough cuts amidst crisis
According to company representatives, there is still no sign of a "post-crisis revival". Germans must make difficult decisions.
Infineon is one of Germany's largest manufacturers of microchips and electronic components. The lion's share of the business consists of automotive components. Unfortunately, the giant has not been faring well recently, to the extent that the spectre of layoffs has become a reality.
President Jochen Hanebeck admitted in a recent speech to investors that recent quarters' results were worse than planned. He also added that, for now, he does not see a post-crisis revival.
The first decisions have already been made. In May 2024, Infineon closed two small production plants in Asia and announced a restructuring, which could eliminate up to 1,400 jobs worldwide, including several hundred at the German factory in Regensburg.
Another 1,400 people are to be relocated to better utilize the potential of individual plants. The company expects the current decisions to have noticeable effects around 2027.
