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© mablelo dreamstime.com Electronics Production | November 19, 2012

Infineon to implement short-time work

"Given the macroeconomic uncertainties and the prospect of further decreases in revenue", Infineon plans to implement several cost reduction measuers.

In manufacturing, Infineon will, for example, adjust production costs through measures such as temporarily switching off underutilized equipment, reducing the temporary workforce and the selective use of short-time work. Additionally, budgeted investments for fiscal 2013 will be reduced from the previouslyplanned amount of 500 million Euros to 400 million Euros. In Research and Development and Sales and Marketing, amongst others, projects of lesser strategic importance will either be postponed or cancelled and costs related to external service providers will be reduced. Furthermore, the Company has frozen headcount at roughly the level reached at the end of the 2012 fiscal year and postponed certain salary increases. The orientation of the incentive scheme to long-term margin targets will add to these cost reductions. In total, the sum of all measures will lead to a cost savings exceeding 100 million Euros. Overall, taking account of the cost reduction measures already decided on, Infineon forecasts a Segment Result Margin for the 2013 fiscal year at a mid- to high-single digit percentage of revenue.
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