A significant change in Intel’s business approach has occurred with the company terminating over 2,000 employees in many US states. This comes after the business announced in August that it would be implementing major layoffs in an attempt to deal with financial difficulties and escalating competition in the semiconductor sector.
The heaviest impact of the job layoffs would be felt in Oregon, where Intel is the second-largest private employer in the state with almost 20,000 employees. Approximately 1,300 of the 2,000 jobs being eliminated are in Oregon, affecting important plants in Hillsboro and Aloha. The impact is amplified by the fact that these facilities are essential to Intel’s US operations. Arizona (385 job cutbacks), California (319 job layoffs), and Texas (251 job cuts) are the other states that are being hit the hardest. The news was disseminated on social media by a number of employees.
Regarding X, an Intel worker remarked, “Another restructuring, another wave of layoffs. It’s my turn to say farewell this time. For all that we achieved at Intel, I’m incredibly proud of this team and of myself. I’m prepared for what comes next since I’ve never worked so hard or learned so much.”
In order to facilitate the transition, affected employees will get extra compensation and benefits in addition to either a 60-day or a four-week notice period. It is anticipated that the layoffs will start on November 15, 2024.
This round of layoffs is in line with CEO Pat Gelsinger’s larger strategy to cut around 15,000 positions globally in an effort to save operating expenses by $10 billion. Gelsinger’s plan calls for turning Intel into a “leaner, simpler, and more agile company” in order to maintain long-term viability in the face of fierce competition from rivals such as global semiconductor manufacturers, AMD, and Nvidia.
“As we continue acting with urgency to execute the plan we announced last month, we are also working to carefully manage our cash as we meaningfully improve our balance sheet and liquidity,” Gelsinger wrote in a letter to staff on September 16. Everybody will be watching us. We must strive for every inch and perform at a higher level than previously. Since it’s the only way to appease our detractors and produce the outcomes we know we can.”
Along with eliminating jobs, Intel is also reorganizing its contract chip production operation and postponing the building of new facilities outside of the US. The company’s operational focus has significantly shifted as a result of these actions, which are intended to reduce expenses and increase competitiveness in a difficult market.