Infineon Lays off 3,000, Reorganizes Divisions

German semiconductor company Infineon on Friday said it would lay off 3,000 employees as part of a cost-reduction program to bring the company back to profitability. The company blamed the layoffs on "adverse foreign exchange rate development and the requirements of the reorganization of the company," saying that headcount reduction was "inevitable." As part of the cost-reduction program, called IFX 10, Infineon is also looking to cut manufacturing costs and reorganize divisions. "Within five quarters, we expect to realize at least €200 million (US$313.6 million) in annualized savings that should pave the way for continued profitability," said Peter Bauer, Infineon's CEO, in a statement. Infineon will remove unprofitable product families and reorganize its business into five divisions: automotive, chipcard and security,... [read full story]