Intel, the chip giant, is preparing to reduce up to 20% of its world -wide labor force next month, despite the fact that the company received more than $ 2 billion in federal funding under the former President Biden Signature Chips Act.
The scale of the layoffs, amounts to about 10,000 workers, was disseminated in an internal email seen by Oregonian/Oregonlive and confirmed by four Intel employees who spoke with the online news.
“These are difficult actions, but essential to meet our current accessibility and financial position of the company. It gives the pain to each individual,” Naga Chandasekaran wrote, Vice President of Intel Manufacturing, he wrote to the note sent to the employees on Saturday.
The planned reductions are planned to start in weeks and, according to reports, will affect Intel Foundry, the internal manufacturing division of the company specializing in the production of semiconductors for external customers.
The unit includes a wide range of jobs: from factory technicians to engineers and researchers who design future generations of chips.
Intel received $ 7.9 billion in federal subsidies last year to support the manufacture of US semiconductors under the Chips Act. The company received $ 2.2 billion before the rest was frozen by a review of the new Trump administration.
The descent cuts are above 15,000 jobs in their world operations last year, after Intel was awarded the Funds of the Chips Law, in the midst of a decrease in PC demand and servers and setbacks in the development of high -end chip chips for artificial intelligence applications.
The company has already postponed the opening of its Ohio factory of $ 10 billion until 2030, citing insufficient demand.
Intel shares have dropped almost 30% for the last 12 months, quoting around $ 21.50 on Wednesday.
He expelled the CEO Pat Gelsinger in March and led to the veteran of Semiconductors Lip-Bu Tan, who emphasized the rationalization of operations, the reduction of bureaucracy and the acceleration of innovation.
“Although I am sure that the rates have some impact on the dismissal of Intel, this is really quite simple; these layoffs are largely due to the financial challenges that Intel faces in terms of decrease in revenue,” said Matt Kimball, Moor Insights & Strategy’s main analyst, told the industry industry network.
Intel first revealed his intention to reduce the count in April, but so far he had not specified the depth of the layoffs.
Chandrasekaran told Oregonian/Oregonlive that the cuts would not imply this time volunteering purchases. In contrast, Intel will make decisions based on performance assessments, strategic priorities and operational needs.
“These reductions will be based on a combination of changes in portfolio, elimination of level and position, evaluation of the skills for the remaining positions and some harsh decisions on our investments in project,” he wrote.
“We are also taking into account the impact of factory operations.”
The publication has sought comments from Intel.
The factory labor in Oregon can be especially affected. Intel is the largest private businessman in the state, with 20,000 workers. The company also operates main manufacturing facilities in Arizona, New Mexico, Israel, Ireland and Malaysia.
Oregon granted Intel $ 115 million in state incentives, which can be cut out if the company does not meet job creation goals or tax revenue related to an expected expansion of its D1X installation in Hillsboro.
Intel refused to comment on Oregonian/Oregonlive about Chandasekaran’s note specifically, but said that the company is still focusing on the transition respectfully.
“We will treat people carefully and respect as we complete this important work,” the company said.
“Elimination of organizational complexity and the enhancement of our engineers will allow us to better meet the needs of our customers and strengthen our execution.”
Intel does not reveal exactly how many of their employees work in factory or manufacturing, but estimates can be taken out of their workforce and known operations.
At the end of 2024, the company reported to have 109,000 employees worldwide. A significant part of these workers is part of Intel Foundry.
Intel’s largest manufacturing center is in Oregon, where it employs approximately 20,000 people. However, not all directly participate in the factory work. The company also operates main manufacturing facilities in Arizona, New Mexico, Israel, Ireland and Malaysia.
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