Intel lays off over 2,200 in the US as cutbacks continue in full force
Intel lays off over 2,200 in the US as cutbacks continue in full force
The chip giant parted ways with thousands of employees in Oregon, Texas, California and Arizona this week, according to reports in the US, as it closes on its target of cutting 15,000 jobs. Hundreds of employees are set to be laid off in Israel at the end of October.
While mass layoffs at Intel Israel will not take place until the end of October due to the Jewish holidays, the chip giant has cut thousands of jobs in the U.S. this week. According to reports in the U.S., Intel has sacked more than 2,250 U.S. workers this week. The majority were laid off in Oregon (1,300), with hundreds of employees also being fired in Arizona (385), California (319) and Texas (251). The numbers were made available as Federal law in the U.S. requires companies to disclose mass layoffs to state and local officials. Intel aims to complete the layoffs of approximately 15,000 employees by the end of the year.
“As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce,” Intel said. “These are the most difficult decisions we ever make, and we are treating people with care and respect. These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”
CEO Pat Gelsinger stated last month that most layoff notices will be issued around mid-October, but the hundreds of employees that are being let go at Intel Israel will not find out until at least the last week of October due to the timing of this year's Jewish holidays. The final holiday of the month of Tishri, Simchat Torah, takes place on Thursday, October 24, meaning that the majority of Intel Israel employees won't return to full work until Sunday, October 27.
Managers across Intel's divisions have already submitted to their superiors the names of employees they recommend for layoffs.
The first phase of cutbacks occurred in August when the company announced a $10 billion cost-cutting plan, which included laying off 15,000 employees—15% of its workforce—and implementing targeted measures like canceling leasing programs and reducing employee benefits. The second phase followed last month, with the announcement that the foundry division—Intel's business of manufacturing chips for other companies—will become an independent subsidiary with its own board of directors.
