Golden parachute: Intel gives up to €500,000 in severance pay for voluntary redundancy

In Ireland, Intel has proposed a voluntary severance package of up to €500,000 for employees of the Leixlip team. The company recently announced it would lay off 15% of its workforce as part of efforts to cut costs.

The offer, communicated to employees last week, allows applications for voluntary departure to be submitted until August 23. Under the proposed conditions, employees with over two years of service can receive an additional five weeks of pay for each year worked. This is in addition to the established two-week salary per year of service, which does not exceed €600 per week, applicable in Ireland.

The proposal also includes five weeks (not additional) of pay for each year of service for employees who have been with Intel for less than two years. An employee may receive a severance package valued at up to €500,000 if their voluntary resignation is approved. Those who submit the application will be informed of the outcome on September 6, and if approved, they will leave Intel on September 30.

Currently, Intel employs around 4,900 people in Ireland. If the chipmaker implements the 15% workforce reduction, it means approximately 730 employees will be laid off. Intel will have to proceed with forced layoffs if there are not enough volunteers for the voluntary severance plan.

However, it remains unclear whether Intel will apply the 15% quota specifically in Ireland. The company has stated that it is still assessing the local impact of the layoffs and therefore has not disclosed specific figures regarding job cuts in Ireland.

In 2022, Intel encouraged up to 2,000 employees in Ireland to take a three-month unpaid leave to reduce costs. From October 2022 to the end of 2023, the company has trimmed its workforce by about 5%.

Recently, Intel shifted substantial processor production to Ireland. During a recent conversation with financial analysts, Intel pointed to this move as a significant contributor to the decline in gross profitability for the quarter. Chief Financial Officer David Zinsner stated that this step has led to $1 billion in capital expenditure savings and will benefit the company in the long run.

Source: Tom's Hardware