New Delhi: Intel, one of the world’s largest and most recognised chipmakers, has started a fresh round of job cuts affecting thousands of employees across various departments. The news broke earlier this week, creating uncertainty among many workers who are now anxiously waiting to find out their future.
According to a report from OregonLive, the layoffs began on Monday, with Intel individually notifying each employee about their job status. This wave of layoffs comes as part of Intel’s larger strategy under new CEO Lip-Bu Tan, aiming to restructure the company after years of declining sales and technical issues.
Intel employees facing uncertainty
Workers at Intel’s large manufacturing unit, Intel Foundry, received prior notifications last month, with plans indicating around 15% to 20% of positions would be cut. This decision alone will impact several thousand technicians, engineers, and researchers. Intel Foundry is particularly important as it handles the creation of new-generation microprocessors and has significant operations in Oregon.
Intel’s automotive technology business is also facing closure, and the company plans to outsource its marketing division to the consulting firm Accenture. By relying on AI-driven solutions, Intel hopes to streamline operations and reduce costs.
In an official statement, Intel mentioned, “As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work.”
Challenges faced by Intel
Intel’s recent struggles include fierce competition from rivals like AMD, ARM Holdings, and TSMC. The chipmaker reported a staggering $19 billion loss last year. Their stocks have sharply fallen, now trading around $22 compared to $50 in 2023.
The company is betting heavily on its new advanced microprocessor technology, known as 18A, expected later this year. But it’s facing limited interest from other companies to adopt this technology for manufacturing.
Intel’s last major round of layoffs occurred in 2024, eliminating around 15,000 positions globally. The current layoffs are of similar scale and likely to have deep impacts both economically and personally for thousands of Intel workers.
Employees affected by these layoffs are expected to receive severance packages similar to those offered last year. That includes at least 13 weeks of salary, plus an additional 1.5 weeks of pay for every year of service.