Intel has announced the termination of over 2,000 employees across several US states, signalling a significant shift in its business strategy.
This move follows the company's August declaration of mass layoffs, part of an effort to navigate financial challenges and increasing competition in the semiconductor industry.
The job cuts are most severe in Oregon, where Intel employs over 20,000 people and is the state’s second-largest private employer.
Approximately 1,300 jobs are set to be cut in Oregon, affecting key facilities in Aloha and Hillsboro. These locations are essential to Intel’s US operations, making the impact of the layoffs particularly profound.
Other states affected include Arizona, which will see 385 job losses, California with 319, and Texas with 251. Several employees have shared their experiences of the layoffs on social media platforms.
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One Intel employee posted on X, formerly known as Twitter, saying, "Another restructure, another round of layoffs.
This time it's my turn to say goodbye. I'm so proud of this team and so very proud of myself for everything we accomplished at Intel. I've never worked so hard or learned so much, and I'm ready for what’s next."
The affected employees are expected to receive either a 60-day notice or a four-week notice, alongside additional pay and benefits to help them through the transition. The layoffs will take effect from 15 November 2024.
This development is part of Intel CEO Pat Gelsinger’s broader strategy to cut over 15,000 jobs globally.
The goal is to reduce operating costs by $10 billion and reshape Intel into a "leaner, simpler, and more agile company," ensuring its long-term sustainability amidst intense competition from rivals such as AMD, Nvidia, and global semiconductor manufacturers.
In a letter addressed to employees on 16 September, Gelsinger stated, "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 ... All eyes will remain on us. We need to fight for every inch and execute better than ever before. Because that’s the only way to quiet our critics and deliver the results we know we’re capable of achieving."
In addition to the job cuts, Intel has delayed the opening of new facilities outside the US and is reorganising its contract chip manufacturing division.
These moves reflect a significant shift in the company’s operational focus, aimed at tightening costs and enhancing competitiveness in a challenging market.
Source: Agencies