Infineon reorganizes mobile business, slashes 400 jobs

Chip maker Infineon Technologies will restructure its mobile telecommunications business, cutting 400 jobs, after the German mobile phone unit of BenQ filed for bankruptcy protection, an Associated Press report said.The Associated Press report said according to Infineon, the bankruptcy of BenQ Mobile, which was a major customer, also would result in charges this year of about 80 million euros ($100.3 million).BenQ Mobile filed for bankruptcy protection on September 29 after its Taiwanese parent abandoned an attempt to turn around the money-losing business it bought from Siemens a year earlier.The unit's bankruptcy administrator has said it will shed nearly 2,000 jobs in a bid to salvage the business, the report said.The Associated Press report, quoting Munich-based Infineon, said the bankruptcy would likely cause an estimated loss of 150 million euros ($188.1 million) in sales during the 2007 fiscal year, with 40 million euros to 50 million euros ($50.2 million to $62.7 million) of that in the first quarter alone.It estimated the restructuring of its mobile unit would cost an estimated 30 million euros ($37.6 million), but predicted that it would break even by the end of 2007, the report said.Of the 400 jobs that will be cut, 200 will go in Germany, the report further said.