The largest private employer in Oregon is trimming its operations after years of slow sales.
BY JACOB PALMER | DIGITAL NEWS EDITOR
The largest private employer in Oregon is trimming its operations after years of slow sales.
Intel will start its expected round of layoffs today as revealed by a letter obtained by the Oregonian.
“Intel Corporation… has decided to reduce spending in the second half of 2015. As part of that effort, we have made the difficult decision to terminate your employment,” begins the standard notification cover letter, dated June 15. It says laid-off employees will be paid through July 15.
Notifications are broadly scheduled to begin Monday, according to documents reviewed by The Oregonian, though some employees may have already gotten word because of vacations or travel that would take them away from the office next week. As The Oregonian reported last week, the job cuts are connected to Intel’s April announcement that it will cut its annual administrative and research budget by $300 million. The chipmaker is adjusting spending after slow PC sales forced Intel to adjust its 2015 sales forecast.
(SOURCE: OregonLive.com)
It is unclear how many Intel employees will lose their jobs, but it is expected that all areas of the company will be affected by the layoffs.
Those who lose their jobs will have had poor job performance reviews or will have accrued less performance-based stock awards, according to the Oregonian.
The company has been fighting slumping PC sales by diversifying its products with a focus on wearables, connected devices and the data center. Earlier this month the company made its boldest move in this direction when it acquired specialty chip maker Altera for nearly $17 billion.
However, all of these efforts come against the backdrop of lower PC sales. The company’s first quarter financial results were dragged down by lower than expected desktop computer sales.
(SOURCE: Portland Business Journal)
Intel employs 17,000 in Washington County.
