Intel’s struggles continue as the company cuts its workforce, impacting over 1,300 employees at its Oregon site, with plans for broader reductions across the company.
At a glance:
- Intel is laying off 1,300 employees from its Gordon Moore Park facility in Oregon as part of a company-wide reduction of 15,000 workers.
- The layoffs represent more than 5% of Intel’s Oregon workforce, marking one of the state’s largest-ever layoffs.
- Intel’s recent financial troubles, including a $1.6 billion loss, have led to this massive downsizing as the company fights to recover.
Intel has begun notifying employees at its Gordon Moore Park facility in Oregon about impending layoffs, with 1,300 workers set to lose their jobs by next month. The move is part of the tech giant’s broader plan to cut more than 15% of its global workforce, amounting to over 15,000 employees, as it grapples with significant financial losses and struggles to compete in the fast-growing AI market.
The cuts in Oregon account for over 5% of Intel’s workforce in the state, where the company employed around 23,000 people earlier this year. By the time the reductions are complete, Intel’s Oregon workforce will fall to less than 20,000, making this one of the largest layoffs in the state’s history. The 1,300 layoffs, however, represent less than half of Intel’s overall reduction target, meaning the final number of workers leaving, including those taking voluntary severance or early retirement, could exceed 3,000.
https://www.youtube.com/watch?v=CFceSmIpJm0
Other divisions within Intel are also feeling the brunt of the downsizing, with the Sales and Marketing Group (SMG) expected to face a 35% reduction in costs. The company has not specified how many jobs will be affected within that group, but many roles and programs are reportedly under threat due to the severe budget cuts.
Intel’s financial struggles became public during its August earnings call, when the company revealed a $1.6 billion loss. Intel has fallen behind key competitors, including Nvidia and AMD, in the AI arms race and has faced setbacks with its 13th and 14th-generation CPUs. To survive, the company is scaling back assets and putting several projects on hold. There are even rumors that Qualcomm may be considering purchasing part of Intel’s business.
In addition to the layoffs, Intel is banking on financial support from the CHIPS Act, which is expected to provide the company with $8.5 billion in direct funding from the federal government by the end of the year. Intel also confirmed it will receive a $3 billion award for its Secure Enclave project, which will enable the company to supply its 18A chips to the Pentagon.
As Intel works to regain its footing, it remains clear that the company is facing significant challenges in staying competitive in an industry rapidly dominated by AI advancements.
