IRISH EMPLOYEES escaped the impact of layoffs at Microsoft and Intel which will see the two global technology firms reduce their staff numbers by 5,000 and 6,000 respectively.
Microsoft said “in light of the further deterioration of global economic conditions” it was reducing staff numbers by 5,000 over the next 18 months, with 1,400 staff leaving yesterday.
In a statement, Microsoft Ireland said “a small number of positions in Ireland are included in the immediate job elimination plans announced by the company today”. It is understood the total number impacted is less than 20.
Microsoft employs more than 1,200 staff in three divisions based in Dublin. Another 700 contract staff are employed through third parties.
In an e-mail to staff, Microsoft chief executive Steve Ballmer outlined other actions the company was taking to cut costs. These include a 20 per cent reduction in spending on travel, reduced marketing budgets and “significant reductions in spending on vendors and contingent staff”.
Mr Ballmer also described the decision to eliminate jobs as “a very difficult one”.
Microsoft is seeking to reduce its annual operating expenses by $1.5 billion and capital spending for the current financial year by $700 million.
Intel said it planned to close some of its older factories, which are located at Penang, Malaysia; Cavite, Philippines; Hillsboro, Oregon; and Santa Clara, California.
Although Intel’s factories in Leixlip, Co Kildare, were not among those earmarked for closure, the company will seek an additional 1,000 redundancies worldwide.
A spokesman for Intel Ireland said the company was still looking at where those job losses would occur. He said Intel employs a total of 5,000 staff in Ireland, both directly and through third parties.
Last week, Intel, the world’s largest chip maker, posted a 90 per cent drop in fourth-quarter profits and a 23 per cent decline in revenue. Earlier this week, it was reported that Intel senior management had warned staff the company could report its first loss in 22 years in the current quarter.
Microsoft, the world’s biggest software company, also released disappointing results overnight on Wednesday. It posted a profit of $4.17 billion, or 47 cents per share, in its second quarter to the end of December, versus a profit of $4.71 billion, or 50 cents, a year ago.
Revenue rose 2 per cent to $16.63 billion.
Microsoft blamed a weak PC market and the popularity of low-cost netbook computers, which have combined to undercut sales of its dominant Windows operating system.
The company said it would not issue any financial forecasts for the rest of the financial year which ends on June 30th.
