Infineon Reports First Success of Its Impact Program
Infineon Technologies AG (Munich, Germany) is successfully implementing its extensive "Impact" cost-reduction program. The company identified far-reaching savings potentials and has already initiated numerous cost-saving measures.
After only two months, Infineon has begun to realize significant savings in the purchasing and logistics areas. Expenses in information technology have already been reduced by one-third. In addition, Infineon reduced its planned capital expenditures for the coming fiscal year (starting October 1, 2001) by almost Euro 600 million, with the goal of cutting the existing budget of Euro 1.5 billion in half.
Infineon is planning to reduce the worldwide workforce by about 5,000 employees. Measures on the personnel side are well under way. By the end of calendar year 2001, the company will have shed approximately 2,400 jobs, of which about 1,900 are outside Germany and 500 inside Germany. Infineon expects only moderate restructuring costs for the further staff reductions. Short-time work schedules will be introduced in the Regensburg and Munich plants in October.
"Infineon has a healthy balance sheet, a significant positive net cash position and available credit lines of approximately Euro 2 billion," explained Dr. Ulrich Schumacher, president and CEO of Infineon Technologies. "We have no current need or plans for further financing activities. These measures have helped us counteract the existing difficult market conditions and we will emerge strengthened from the worldwide downturn in the semiconductor market."