Germany’s largest semiconductor company, Infineon Technologies has announced plans to layoff 1,400 jobs globally and relocate an additional 1,400 roles to countries with cheaper labour costs, as a part of recent cost cutting measures. The news comes days after chip giant Intel said it would be firing 15 percent of its workforce, or around 16,000 people after weak earnings. 

The firm has around 58,600 employees globally, as noted on its website, generated 3.70 billion euros in the recent April-June quarter, lower than its 3.8 billion euro forecast that is lower by 9 percent from the last year. 

They also lowered annual revenue guidance to around 15 billion euros, having narrowed it twice already. 

CEO Jochen Hanebeck blamed the company’s weakening sales on global economic conditions saying, “The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand.” 

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Infineon had previously announced its ‘Step Up’ cost savings programme which applies to manufacturing, portfolio management, pricing and optimising operating costs.