Infineon Technologies (IFXGn.DE) has announced significant restructuring after a challenging Q3, missing revenue and profit expectations. The German chipmaker will cut 1,400 jobs and relocate another 1,400 positions to lower-cost countries. CEO Jochen Hanebeck cited slow market recovery and high inventory levels as key issues.
For Q3, Infineon reported €3.702 billion in revenue, below the €3.8 billion forecast and down 9% YoY. Net profit was €403 million, missing the €447 million consensus. Consequently, the company downgraded its annual revenue forecast to ~€15 billion, its third revision this year.
Despite these setbacks, Infineon’s segment result, a preferred profitability measure, exceeded expectations at €734 million. Analysts noted potential growth in Q4 and resilience amid tough market conditions.
The “Step Up” cost-saving program, expected to show benefits by 2025, aims to improve financial stability. Automotive segment revenue rose slightly, driven by demand in software-defined vehicles.
Infineon’s shares fell initially but rebounded, highlighting market confidence in its long-term strategy. As competitors face similar challenges, Infineon remains cautiously optimistic about the future.