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Intel plans for job cuts as financial woes continue

By Nithya Bose in US business news, posted May 9, 2023

Intel has confirmed plans to carry out another round of layoffs following a major drop in revenue over the past six months.

The company did not disclose how many jobs would be impacted or which areas would be affected.

However, it did say the cuts will be focused on identifying cost reductions and efficiency gains through multiple initiatives.

It includes some business and function-specific workforce reductions across the company.

Intel said: “These are difficult decisions, and we are committed to treating impacted employees with dignity and respect."

Dylan Patel, of the technology research firm SemiAnalysis first reported the pending cuts over the weekend.

The layoffs come as the company seeks billions of dollars in federal subsidies to cover the expense of developing new, advanced plants in Arizona and Ohio.

Intel said it will continue to "invest in areas core to our business, including our US-based manufacturing operations."

“We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company.”

The tech giant had axed more than 500 employees in California in cuts announced last fall.

Intel said last week it wants its staff to work remotely less frequently to boost productivity, collaboration, and corporate culture.

It's financial troubles result from a sharp decline in demand for the microprocessors it supplies for PCs and data centers.

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Over the last six months, sales fell 38 percent, indicating a slowing economy and less spending from households and businesses who stocked up on computers early in the pandemic.

Furthermore, it suffers greater competition from rivals like TSMC, AMD, and Nvidia, who are eroding Intel's market position in a number of key areas.

The cuts are the latest in a long line of cost-cutting measures as the company seeks to bolster its finances.

In February, the firm sliced its shareholder dividend by two-thirds and announced temporary pay and incentive cuts in January.

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