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Chipzilla reduces more jobs

by on21 June 2024

Manages expenses until sales pick up

Intel, the chipmaker, is once again reducing jobs as part of its ongoing efforts to manage expenses while awaiting a sales recovery.

The company aims to enhance margins and cut costs through various initiatives.

Although Intel hasn't disclosed the exact number of job cuts or specific areas affected, insiders report that each business unit independently decides how to meet spending targets set by corporate leadership.

Some employees have been offered buyout programs, but it remains unclear whether Intel will also lay off additional US workers.

In recent years, Intel has faced multiple rounds of job cuts, including layoffs in sales and marketing departments. Israeli tech publication Calcalist recently reported layoffs at a subsidiary called Moovit.

While Intel hasn't specified the number of layoffs in Oregon during its cost-cutting period, the company did add approximately 1,000 net jobs at its Washington County campuses in 2023. As Oregon's most prominent corporate employer, Intel employs 23,000 workers.

Intel’s sales fell 20 per cent in 2022 and another 14 per cent last year amid a slowdown in the PC and data centre markets and intense competition from rivals including AMD and Nvidia. Intel has committed tens of billions of dollars to build advanced new factories but has cautioned investors that its turnaround plan will take years, not months.

Despite challenges, Intel is investing in advanced factories, securing federal subsidies, and postponing the construction of a new factory in Israel.

The company aims to use its existing plants to serve rivals lacking their manufacturing facilities for AI chips.

Last modified on 21 June 2024
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