German chip manufacturer Infineon plans to cut 1,400 jobs and relocate another 1,400 to low-wage countries as part of a previously announced cost-saving program, the firm's CEO Jochen Hanebeck said on Monday.

An earlier announcement has said the job cuts will primarily impact the Regensburg plant in southern Germany, affecting several hundred positions.

Like many in the semiconductor industry, Infineon is grappling with reduced demand for its products.

According to the quarterly results published on Monday, although earnings and sales have increased slightly compared to the second quarter, they remain well below last year's levels. In addition, the company's profit stood at 403 million euros (about 441 million U.S. dollars), marking a 52 percent decrease from the same period last year, said the results.

Infineon forecasts revenue of approximately 4 billion euros for the fourth quarter, and the company, which employs around 58,600 people worldwide according to its website, projects revenue to be around 15 billion euros for the entire fiscal year 2024, well within the previously guided range.

"In a market environment that remains challenging, Infineon continues to hold up well," Hanebeck said. "The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand."

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