Intel is making job cuts as part of its efforts to reduce spending while waiting for a sales rebound. The chipmaker is focusing on cost reductions and margin improvements through various initiatives. The company did not specify the number of jobs being eliminated or in which areas, but each business unit is making decisions on how to meet spending goals set by corporate leadership.
Employees, who requested anonymity when discussing their employer, revealed that Intel has offered a purchasing program to staff in some departments but not others. It is uncertain if the company is also laying off more American workers. Intel previously laid off an undisclosed number of employees in its sales and marketing departments, starting in April, following job cuts in 2023. Reports also indicate that Intel is laying off about two dozen employees at a subsidiary called Moovit.
While Intel has not disclosed the exact number of layoffs in Oregon over the past two years, the company added about 1,000 net jobs at its Washington County campuses in 2023. Despite the cuts, Intel remains Oregon’s largest corporate employer with 23,000 workers in the state.
Intel’s sales have experienced significant declines in recent years due to a slowdown in the PC and data center markets and fierce competition from rivals like AMD and Nvidia. The company has committed substantial investments in building new advanced factories but has cautioned investors that its turnaround plan will take years, not months.
To control costs during the sales downturn, Intel has secured funding from outside investors to support new factory construction in Arizona and Ireland. The company has also decided to indefinitely postpone the construction of a new factory in Israel.
Intel is lagging in the artificial intelligence technology market but aims to leverage the growing industry by contracting with rivals to manufacture their chips inside Intel plants. The company received $8.5 billion in federal subsidies earlier this year to support the construction of a new factory, in addition to other loans and tax incentives. Intel has also received substantial funding from Oregon for factory improvements and expansions in Hillsboro.
There is no set timetable for Intel’s Oregon expansion, but the company remains committed to investing in core areas of its business for long-term growth.
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https://www.oregonlive.com/silicon-forest/2024/06/intel-trims-more-jobs-amid-broad-cost-cuts.html
