Munich - Infineon Technologies AG announced Friday plans to slash its workforce by 10 per cent after Europe's second biggest semiconductor group posted a third-quarter net loss of 592 million euros (930 million dollars) amid fierce market competition.

The chipmaker's further loss came the group was forced to announce further writedowns of 411 million euros for its memory chip offshoot Qimonda.

After initially falling by about 2.7 per cent following the release of Infineon's latest results, the group's shares rebounded by
3.3 per cent to 5 euros in mid-morning trading in Frankfurt.

The 10-per-cent staff reduction will involve cutting 3,000 jobs across the company. (dpa)