Intel begins layoffs affecting over 2,000 employees across the U.S. as part of a broader cost-cutting strategy.
The majority of the layoffs will occur in Oregon, with around 1,300 employees impacted.
The layoffs aim to reduce costs amid challenging financial conditions, with Intel targeting $10 billion in savings.
Intel has initiated the process of laying off its employees. As per the company, this is a part of the bigger cost-cutting strategy of the company. Intel announced that these layoffs are in compliance with the Worker Adjustment and Retraining Notification (WARN) Act, which mandates advance notice for large-scale layoffs. Initial reports suggest that these layoffs can affect over 2,000 Intel employees across facilities. This can include teams in Oregon, Arizona, California, and Texas.
From what we know so far, the majority of the layoffs will occur in Oregon. Here, around 1,300 employees are affected. In Arizona, the number is expected to be around 385 employees while in California around 319 workers can lose their jobs across San Jose and Folsom, and 251 layoffs are planned for Intel’s Austin, Texas, office.
CEO Pat Gelsinger shared a broader plan to take this through while confirming the layoffs. He said that the company aims to cut over 15,000 jobs and reduce costs by more than $10 billion in response to challenging financial conditions. He further shared that, more than half of the targeted job cuts have already been achieved through early retirements and voluntary buyouts.
To this, an Intel spokesperson added, “As part of our cost-saving measures, we are making difficult but necessary decisions to reduce the size of our workforce.” He further added, “We are treating our employees with care and respect during this challenging time,” as reported by CRN.
The layoffs are expected to begin on November 15 in Oregon and California. The affected employees have been provided with a 60-day notice or a package offering nine weeks of pay and benefits.
Currently, Intel is struggling on many fronts. This also includes a delay in the opening of new facilities outside the United States and restructuring its contract chip manufacturing business into an independent subsidiary. The company hopes to streamline operations and strengthen the company’s x86 chip strategy.
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