Intel is making job cuts as part of cost-saving measures while it hopes for a boost in sales. The company did not disclose the exact number of job cuts or the specific areas affected. Each business unit within Intel is responsible for deciding how to meet corporate spending targets.
Employees have reported that Intel has offered a purchasing program to some departments but not others, raising questions about potential layoffs of American workers. Intel has already laid off employees in the sales and marketing departments over the past year, including at a subsidiary called Moovit.
Although Intel has not specified the number of job cuts in Oregon, the company did add about 1,000 net jobs at its Washington County campuses in 2023. Intel is the largest corporate employer in Oregon, with 23,000 workers in the state.
Intel’s sales have been declining due to a slowdown in the PC and data center markets, as well as increased competition from rivals like AMD and Nvidia. Despite investing in new advanced factories, Intel has warned investors that its turnaround plan will take years to materialize.
To manage costs during this period, Intel has brought in outside investors to help fund new factories in Arizona and Ireland. Additionally, the company has decided to indefinitely delay the construction of a new factory in Israel.
Intel is looking to tap into the artificial intelligence market, despite lagging behind competitors. The company plans to produce chips for rivals without their own factories, aiming to benefit from the growing demand for AI technology.
In March, Intel secured $8.5 billion in federal subsidies to support the construction of its factory, along with loans and tax incentives worth billions more. Oregon has also provided funding to help subsidize factory improvements, including an expansion at the D1X research facility.
Intel has not established a timeline for the expansion in Oregon but continues to invest in core areas of its business for long-term growth.
Overall, Intel’s job cuts and cost-saving measures come as the company works to navigate a challenging market environment and position itself for future growth.
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https://www.oregonlive.com/silicon-forest/2024/06/intel-trims-more-jobs-amid-broad-cost-cuts.html?outputType=amp
