Infineon cuts costs as revenue falls

Semiconductor maker Infineon Technologies AG says it will cut back on investment plans and introduce short-time working as global economic uncertainty weighs on demand and revenue.

Infineon on Wednesday reported drops in revenue for the July-September period, its fiscal fourth quarter, and for the full fiscal year. Net profit improved in the fourth quarter but was down sharply for the full year.

The company says it expects revenue in the new fiscal year to drop further. It says it will temporarily switch off underused equipment, cut back on temporary workers and make "selective use" of short-time work schemes, which allow employers to reduce production without cutting their workforce.

Planned investments for the new fiscal year will be cut from €500 million ($635 million) to €400 million.