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

In Ireland, Intel has offered employees from the Leixlip team a severance package of up to €500 thousand for voluntary resignation. Recently, Intel announced that it would lay off 15% of its employees to cut costs.

The offer, which was distributed to employees last week, allows them to apply for voluntary resignation until August 23. Under the proposed terms, employees with more than two years of service can receive an additional five weeks’ pay for each year of service. This is in addition to the two-weekly salary per year of service established in Ireland, which does not exceed €600 per week.

The offer also provides five weeks’ pay (not additional) per year of service to employees who have been with Intel for less than two years. Employees can receive severance pay of up to €500 thousand if they are approved for voluntary resignation. Those who have submitted their resignations will hear the outcome of the review on September 6 and, if approved, will leave Intel on September 30.

For now, the following are available Intel in Ireland employs about 4,900 people. If the chipmaker applies a 15% reduction in the workforce, it means laying off about 730 employees. Intel will be forced to dismiss them forcibly if there are not enough people willing to receive a voluntary dismissal plan.

But it is not known for sure whether Intel will apply the 15% quota directly in Ireland. The company says that Intel is still assessing the local impact of the cuts, so it is not disclosing any figures for layoffs in Ireland.

In 2022, Intel encouraged up to 2000 employees in Ireland to take a three-month unpaid leave to cut costs. From October 2022 to the end of 2023, the company reduced its staff by about 5%.

Intel recently moved large amounts of processor production to Ireland. During a recent call with financial analysts, Intel pointed to this move as a major contributor to the fall in gross margin in the quarter. Chief Financial Officer David Zinsner says the move resulted in $1 billion in capital cost savings and will benefit the company in the long run.

Source: Tom’s Hardware