Infineon, a leading chip manufacturer, is preparing for a challenging business environment with expected revenue declines and significant job cuts.
Key points include:
Projected revenue for 2024/25 may decrease slightly, with a segment margin expected in the mid to high single-digit percentage range.
Costs associated with underutilized production are anticipated to rise to around one billion euros, impacting profitability by approximately five percent.
In the first quarter, revenue is expected to drop to 3.2 billion euros from 3.9 billion euros in the previous quarter.
Infineon plans to reduce its workforce by 1,400 positions globally, with 1,300 job cuts or relocations in Germany.
Investment spending will decrease by ten percent to 2.5 billion euros.
Despite a challenging outlook, analysts suggest that Infineon may capitalize on opportunities in the AI server market, though this may not offset weaknesses in the automotive sector.