Intel cuts 2,000 jobs, laid off employees will get up to 60-day notice

Intel has fired over 2,000 employees across various US states, marking a major shift in its business strategy. This development follows the company's August announcement of mass layoffs as part of its efforts to navigate financial challenges and rising competition in the semiconductor industry

Intel cuts 2,000 jobs

In Short

• Intel has fired over 2,000 employees across various US states
• This development follows the company’s August announcement of mass layoffs
• Affected employees are set to receive either a 60-day notice or a four-week notice

Intel has begun implementing mass layoffs that it announced back in August, impacting more than 2,000 jobs across several US states. The company says these workforce reductions are part of its broader cost-cutting measures.

Intel has fired over 2,000 employees across various US states, marking a major shift in its business strategy. This development follows the company’s August announcement of mass layoffs as part of its efforts to navigate financial challenges and rising competition in the semiconductor industry.

The job cuts will hit hardest in Oregon, where Intel employs over 20,000 people and is the state's second-largest private employer. Of the 2,000 jobs being slashed, approximately 1,300 are in Oregon, affecting key facilities in Aloha and Hillsboro. These locations are vital to Intel's US operations, making the impact even more pronounced. Other states feeling the brunt include Arizona, with 385 job cuts, California with 319, and Texas with 251. Several employees have shared the news on social media platforms.

An Intel employee commented on X, 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."

Affected employees are set to receive either a 60-day notice or a four-week notice, with additional pay and benefits to help ease the transition. The layoffs are expected to commence from November 15, 2024.

This wave of layoffs aligns with CEO Pat Gelsinger’s broader plan to eliminate over 15,000 jobs worldwide, as part of a bid to reduce operating costs by $10 billion. Gelsinger's strategy involves reshaping Intel into a "leaner, simpler, and more agile company," ensuring long-term sustainability amidst intense competition from rivals like AMD, Nvidia, and global semiconductor manufacturers.

In a letter to employees on September 16, Gelsinger said, "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."

Intel is not only cutting jobs but also delaying the opening of new facilities outside the US and reorganising its contract chip manufacturing division. These moves signal a significant shift in the company’s operational focus, aimed at tightening costs and boosting competitiveness in a challenging market.