Intel lays off over 2,000 employees in the US
California-based global chip giant Intel has announced plans to lay off over 2,000 employees across multiple US states. The decision comes as part of a wider cost-cutting strategy to save over $10 billion. The layoffs will mainly impact workers in Oregon, Arizona, and California with further job cuts anticipated in Texas. This is Intel's seventh round of layoff since 2022, as per Layoffs.fyi, a website that tracks tech layoffs since COVID-19.
Breakdown of layoffs across states
The layoffs will affect nearly 1,300 employees in Oregon, another 385 in Arizona, and 219 in California. Another 251 job cuts are also expected in Texas. This was confirmed by an Intel spokesperson who further clarified that these job cuts are part of the larger layoff plan announced by Intel CEO Pat Gelsinger earlier this year. In August this year, the chipmaker laid off over 15,000 employees in one of the biggest downsizing rounds seen in decades.
Intel's restructuring plan amid financial crisis
In September, Gelsinger had revealed that Intel would separate its chip-manufacturing and design operations as part of its cost-cutting measures. He had said that this move would allow the manufacturing arm to secure financing independently, address customer concerns about its independence, and align it more closely with a contract chip maker. These changes are part of an effort to navigate one of the most significant crises in the company's five-decade history.
Intel pauses factory projects, appoints new global channel chief
Along with the layoffs, Intel is also pausing factory projects in Germany and Poland for two years and putting a manufacturing project in Malaysia on hold until demand picks back up. Notably, in October, the company appointed channel veteran Dave Guzzi as its new global channel chief. Guzzi will be responsible for implementing a new regional engagement model for partners in 2025.
