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Sales decline signal more job cuts for Infineon

27 Sep 2012  | Peter Clarke

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In its latest earnings guidance, German chip maker Infineon Technologies said that during the fourth quarter of its current fiscal year, it is defining "measures to improve profitability." Beyond a previously announced hiring freeze, however, the Munich-based company not specify what actions it will take. Job cuts, plant closings and spending restrictions are also part of their options.

By the end of its 4Q revenue review on Sept. 30, Infineon expects revenue to be slightly down compared to the previous quarter, which was about $1.28 billion. Based on the guidance released in July, this would put the projection at the bottom end. Because of this expectation, Infineon had said at the time that it was evaluating cost-saving measures and freezing company headcount. On Sept. 25, the company will define and implement measures to improve profitability beyond the first quarter of the 2013 fiscal year. Infineon is forecasting a sequential revenue decline of 10 per cent for the first quarter of fiscal 2013.

Further details on cost cutting are expected when Infineon announces it latest financial results on Nov. 14.

Infineon CEO Peter Bauer will retire at the end of the company's fiscal year on Sept. 30. He will be replaced by Reinhard Ploss.




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