Analysis: Intel's Irish workers are too valuable to cut

Once the domineering force in computing and data centre processors, technology giant Intel's inattentive response to the global AI shift has led to it ceding critical ground to its largest rivals.
The chipmaker is now struggling to keep up with key competitor Nvidia, which saw revenue climb to more than $39bn in its last fiscal quarter on the back of its datacenter unit, responsible for powering most generative AI models, which continues to soar in demand.
In addition, rival Taiwan Semiconductor Manufacturing saw revenue in its last quarter total $26.4bn, also underpinned by resilient demand for advanced chips used in AI applications.
Meanwhile, struggling chipmaker Intel saw revenue fall by 7% to just over $14bn in its latest fiscal quarter, with the company due to release earnings for the past three months on Thursday, which will offer the clearest look yet at the company's latest strategy to reverse operational lapses.
In the past 12 months, Intel's stock has declined by about 43%, closing on Tuesday at $19.51, a far cry from its $34 share price in April 2024.
However, also expected this week are plans by the embattled chipmaker to cut 20% of its staff, as new CEO Lip-Bu Tan aims to eliminate bureaucracy and streamline leadership across the firm. Assuming the top role just last month, Mr Tan has vowed to spin off company assets that he deems are not central to Intel's mission.
The latest reported cuts follow efforts by the company in August last year to slash around 15,000 jobs. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year.
Of that number, some 5,000 workers are based here in Ireland, concentrated primarily in the company's campus in Leixlip, Kildare. Some 300 employees are based at the company's research and development base in Shannon, however, the company announced last year that it would close this facility by the end of 2025 as part of its savings plan, with staff being offered the opportunity to move to remote working.
Since 1989, Intel has invested more than €30bn in its Irish operations, with its Leixlip base home to the company's European manufacturing hub. In 2023, the chipmaker opened its €17bn Fab 34 factory, the largest construction project to ever be undertaken in Ireland, according to Intel, which doubled the chipmaker's manufacturing space in Ireland.
In June last year, it was announced that asset management firm Apollo Global would provide more than €10bn to Intel to buy a 49% stake in the Fab 34 facility, with the transaction allowing the chipmaker to retain majority ownership and control the plant while also having access to funding needed to pursue future expansions.
Intel's Irish base is its second-largest after the US and is paramount to the chipmaker's global operations. Its Leixlip campus is poised to produce the majority of its Intel 4 technology, which includes the company's extreme ultraviolet (EUV) chips, the most advanced semiconductor manufacturing technology on the market.
According to Intel, EUVs play a 'critical role' in driving the company towards its goals of delivering five nodes in four years and regaining leadership in process technology by 2025.
The Fab 34 facility in Leixlip is also part of what the company calls a 'first-of-its-kind end-to-end leading-edge semiconductor manufacturing value chain in Europe,' with the site being combined with a wafer fabrication facility in Germany and an assembly and test facility in Poland.
Yet, despite Ireland being a cornerstone of Intel's global manufacturing footprint, the sheer size of its operations makes it unlikely it will come out completely unscathed by the chipmaker's latest round of global layoffs.
Around 5% of all Intel staff are based in Ireland, with a 20% reduction in staff, if applied uniformly across operations, equating to more than 900 Irish job losses.
But with a new facility able to serve viable markets for another few years, and a need for Intel to keep Fab 34's minority shareholder sweet to avoid any financial penalties, cutting a large number of Irish staff seems counterproductive from a purely business standpoint.
Hence, while administrative and soon-to-be remote working R&D staff may be caught in the firing line of Intel's latest restructuring scheme, it seems unlikely that those on the ground on Fab 34 and the broader Leixlip campus will be hurt. On a global scale, they are simply too valuable.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Irish Daily Mirror

31 minutes ago

• Irish Daily Mirror

Irish House to showcase the best of Irish drinks, hospitality and culture at Tales of the Cocktail in New Orleans

The founders of Lost Irish Whiskey, the ARCD Agency NYC and Bord Bia are proud to present Irish House at Tales of The Cocktail festival in New Orleans. Taking place on Thursday July 24th from 1-6pm, it celebrates the spirit of Ireland in the heart of the French quarter. The Irish House is the largest single event gathering of Irish bars and Irish spirit brands, running at the world's largest cocktail and spirits festival. A first of its kind, it will showcase the best of Irish drinks, hospitality and culture all under one roof on a unique world stage. After more than a decade of attending Tales of the Cocktail, both Tim Herlihy of Lost Irish Whiskey and Leah Doyle CEO of the ARCD Agency, saw the growing presence not just of Irish bars attending the festival but Irish brands too. It gave them the initial inspiration to establish the concept around Irish House and with the support of Daragh Flanagan, the vice president of drinks at Bord Bia, North America, it will be launched this July. Leah details it further by saying, 'Two years ago, Tim and I were standing at an event and looked around and realized how much Irish Talent was in New Orleans, from Irish bar teams in the US like The Dead Rabbit, Bartley Dunnes, Casements to mention a few and the teams over from Ireland like BAR 1661 and Cask - and we decided then we had to bring this event to life and really showcase what modern Irish hospitality is all about. The timing and momentum felt right to combine all Irish efforts in the one setting - and Irish House was born.' Established over 20 years ago with humble beginnings, Tales of the Cocktail has gone on to become the biggest trade conference for the global spirits industry. It's a week-long gala incorporating everything from tastings, seminars, lectures, launches and brand festivities that attracts thousands of trade visitors from every corner of the globe. Stressing the importance of the Irish House's location, Daragh adds, 'Since joining Bord Bia, I set out to elevate our trade education & engagement, particularly in the on-trade, reaching more high-level bartenders across the US & Canada, to spread the good word on all of the amazing modern & innovative Irish drinks producers - Tales of the Cocktail is the perfect platform for this, as the best of the best will all be in attendance!' Bar teams from both the USA and Ireland will be there to mix up and serve some of their best creations made with Irish drinks. They include: The list of participating drinks brands range from well-known multinationals to small independents: In his support of Irish House, co-founder and managing director of the multiple award winning Dead Rabbit shared, 'We've built The Dead Rabbit around a celebration of modern Irish culture, spirits, and hospitality, and Bord Bia has been essential in fostering greater connectivity between Ireland and the States. "The Irish House - and our collaboration with Guinness - represents a first-of-its-kind celebration of Irish culture at Tales, and is the perfect stage to showcase the incredible depth, craftsmanship, and camaraderie that defines just that.' The Irish House takes place on July 24th from 1 to 6pm at 411 Bourbon Street, New Orleans, LA 70130. Admission is free with registration for tickets by clicking here. Follow Irish House on Instagram here.

Irish Independent

an hour ago

• Irish Independent

Louth fishermen treated like second-class citizens – ‘We have been absolutely screwed since Brexit'

Prawns are their bread and butter, yet their prawn quota has dropped by 30 to 40pc in the past five years. But they are also not allowed to fish for Squid around the lucrative Rockall fishery because of Brexit - and Royal Navy warships have been patrolling to keep them out of the area. Niall Connolly whose family are synonymous with fishing in Clogherhead revealed: "We have been absolutely screwed since Brexit and the truth is we have been treated like second class citizens by the EU for years. "What is going on is criminal. Prawns are our main catch in Clogherhead yet our quota is down by 30-40pc in the last five years and we are struggling to survive. "We can't fish for Squid around Rockall which makes matters worse. "Our prawn quota for July is 16 tonnes while a year ago it was 24 tonnes. The squeeze is on especially for fishermen in the south-east. "They traditionally fished for Sole but can't because Belgium has most of the quota and then they in turn are now going after prawns to survive which is putting pressure on the rest of us." In the last few years the Dept of Marine brought in a decommissioning scheme to remove some of the fleet so the rest could earn a living with the quotas they had. But Niall Connolly said: "Because our quota is so low many are fishing for scraps. "We are lucky that we are in the prawn game and we are just about getting by. ADVERTISEMENT Learn more "But the Irish Mackerel quota for instance has been slashed and there are big boats around the country tied up for nine months of the year because they have no quotas, which is wrong." He called on the Government and the new Minister for Fisheries Timmy Dooley to up their game in Brussels and negotiate the EU Common Fishery Policy so Irish fishers get a better deal. He added: "We need a better deal for Irish fishermen, there are so many livelihoods depending on it." The CEO of the Irish Fish Producers Association Aodh O' Donnell revealed that Irish Fishermen are facing a 15pc cut in their quotas over the next six years and something urgent needs to be done to stop it.

The Irish Sun

2 hours ago

• The Irish Sun

‘She just wept, it was crazy… it's the wild, wild west', says Ireland AM star on ‘hopeless' struggle of buying home

IRELAND AM star Muireann O'Connell has said the Irish housing market is "hopeless" compared to Australia. The became a with her fiance after years of gruelling house hunting. 3 Muireann O'Connell recently became a first-time home owner 3 Muireann has said the Irish housing market is 'hopeless' 3 Muireann told how the buying process in Australia is much easier The After blood, sweat and tears, the popular presenter But, even after securing her first-ever property, the 41-year-old has told how "hopeless" the buying process feels. Speaking on Louise Cooney's podcast, Open Book, Muireann said: "It just feels more than dysfunctional, it feels very hopeless for an awful lot of people." READ MORE IN IRELAND AMIRE She admitted: "But it's just that the process is the wild, wild west." The star explained how her close pals who live in Muireann explained: "They're like, 'The house just goes up, this is the price of the house, someone bids and there you go, you get yourself a house. "It's done in like 10 days." Most read in News TV The breakfast show host highlighted how a lack of "supply" is the main problem with the Irish But, noted that length of the buying process is also a tough factor. Muirean O'Connell wears unique €70 blouse live on air The Virgin Media star even reminisced on her own experience with viewing homes . She said: "One woman was pregnant and she also had a child with her. The house was already 140,000 over the asking price and she just wept, it was crazy." Beside the struggle of buying a home, Muireann has also had a tough time with renovating her new pad. Whilst the new home is being renovated Muireann and her partner will remain in their HOUSE THAT? Taking to The Limerick lady said: "Probably the most viscerally horrible thing to ever happen to me was getting the coil. Awful, I hated it, it should be given under general anastethic. "But, would I chose to have that procedure done everyday rather than clearing out my house and packing up, yes." The Irish host highlighted how she had been living in her current home since 2017, but had found items that belonged to her in 2003. She cried: "I didn't even live in Dublin in 2003, how did you get in to this house? Why are you here? Do you spark joy in my life? No!" Muireann shook her head ashamedly and added: "Look I know I am an over consumer, it is a reckoning and I'm having a bit of an existential crisis about that right now."