Infineon Announces New Restructuring Plans

October 16, 2003 by Jeff Shepard

Infineon Technologies AG (Germany) announced that payroll accounting, major parts of the recruiting function, and student intern hosting in Germany and Austria will be outsourced to EDS for the next 10 years. Both companies expect a contract volume amounting to a double-digit, million-dollar sum. It is planned that EDS will take over parts of the Infineon workforce.

The contract envisions for the transfer of operating responsibility for the areas concerned to EDS with effect from January 2, 2004, and the completion of the transfer of all processes to EDS by October 1, 2004. The quality of the outsourced functions is ensured by precise specification of service descriptions, service levels and key performance indicators.

"By outsourcing our payroll accounting and major parts of the recruiting function we are pressing further ahead with the extensive restructuring measures planned as part of the implementation of our agenda five-to-one corporate strategy," said Thomas Marquardt, global head human resources. "Taking over personnel processes is where EDS' core competence lies, and so we can further improve the relevant services for employees at our sites in Munich, Regensburg, Dresden, Warstein and Villach and, at the same time, reduce operating costs as a result of the greater transparency and control as well as gain greater flexibility."