But sources rejected the notion that this is the start of a trend sparked by US president Donald Trump’s tenure in the White House and the looming threat of tariffs.
About 5,000 people are currently employed by Intel in Ireland, and several hundred of those live in Leixlip.
Although Intel has not yet confirmed whether the cuts will affect the plant there, ministers fear hundreds of Irish jobs are at stake.
The company is expected to confirm plans to lay off around 20pc of its global staff as it delivers its quarterly results tonight.
The Government has not yet been notified of how extensive job cuts will be, and ministers have been publicly playing down wide-ranging losses.
“It’s not good and it sets a worrying tone,” a government source said. “From media reports, they have said the lay-offs will be targeted at management and bureaucracy, but Leixlip is already heavy on engineering, so we’re hopeful it won’t be as bad.”
Enterprise Minister Peter Burke said speculation about possible lay-offs was “very difficult” for staff working at the Intel plant.
“Ireland continues to play an important role in Intel’s plans as the European hub for manufacturing semiconductors, and we don’t see speculation around headcount reduction changing this,” he said in a statement.
“I appreciate speculation is very difficult for staff in Leixlip, and we will continue our engagement with management over the coming weeks and months.”
It appears his focus is on trimming non-core activities, so I would suggest the Leixlip workforce is less threatened than other locations
Further and Higher Education Minister James Lawless, who is a TD for the area, said the Leixlip workforce would be “less threatened” by redundancies if the focus of the lay-offs was on “trimming non-core activities”.
He pointed to Intel CEO Lip-Bu Tan’s previous comments that the company would spin off “non-core” units.
“It appears his focus is on trimming non-core activities, so I would suggest the Leixlip workforce is less threatened by that pivot than other locations may be, given the engineering-intensive focus of its activity here,” Mr Lawless said.
“The focus of the Irish operation is in engineering, advanced manufacturing and chip design.
“These are all critical areas for the company’s future and ones I fully support as Minister for Research and Innovation.”
The Government is partnering with the company in research and innovation and will launch a national semiconductor strategy in the coming weeks.
Local Fianna Fáil TD Naoise Ó Cearúil said it was a “deeply difficult and uncertain time” for staff at Intel and their families, and the company’s presence was central to the local economy, where it has been a major employer for decades.
He said no one should have to face uncertainty about whether there would be lay-offs, and he will push government ministers for “clear supports and pathways” to be made available to workers who may be impacted.
The cutbacks follow an effort at Intel last year to slash about 15,000 jobs, with a round of lay-offs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year.
It will impact any town, not just Intel staff living in Leixlip – they live all over the place, so it’s going to have an impact on a lot of people
Local councillors in the area are due to meet Intel representatives next Thursday.
Fianna Fáil councillor for Leixlip Bernard Caldwell said: “Local councillors meet Intel twice a year – that’s a privilege we’ve had since Intel came here.”
He said the Intel staff had not been informed of anything yet.
“It’s all speculation, and they’re waiting to get official news whenever. But as of now, which is 4pm on Wednesday, they’re still not aware of their future,” he said. “They would be concerned, and hopefully it’s not as bad as what’s predicted.
“It will impact any town, not just Intel staff living in Leixlip – they live all over the place, so it’s going to have an impact on a lot of people.”
Locals were uncertain about the effect of the announcement on the main street yesterday because most Intel staff commute to work in shuttle buses and might not come to town as often.
Stephen O’Kennedy, who works in Leixlip, said the job cuts were only “rumours” at this stage.
“We have a local business down here, we have a number of sub-contracting clients who work in Intel,” he said.
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