Intel Confirms Job Cuts Are Coming but Offers Few Specifics

More than 500 California Intel employees lost their jobs in January, but Oregon numbers were not announced.

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Intel Corp. confirmed plans Monday to lay off more employees, though the company has not released details on the number of employees affected.

Tech industry analyst Dylan Patel tweeted about the cuts Saturday, saying the company is planning to cut 10% of budgets from its data center and client computing groups, possibly resulting in 20% employee cuts. In January Patel broke the news that the company was cutting employees’ pay.

Intel has declined to comment on specifics but did confirm its plans in a statement sent to reporters.

“Intel is working to accelerate its strategy while navigating a challenging macro-economic environment. 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 statement read. “We continue to invest in areas core to our business, including our U.S.-based manufacturing operations, to ensure we are well positioned for long-term growth. These are difficult decisions, and we are committed to treating impacted employees with dignity and respect.”

The microchip manufacturer is based in Santa Clara, Calif., but is Oregon’s largest private-sector employer, with about 22,000 workers at its Hillsboro campus.

The upcoming cuts would be the second round of layoffs at Intel in less than a year. Earlier this year, more than 500 California-based employees lost their jobs in cuts announced in November. Employees that remained received cuts to their pay, and CEO Pat Gelsinger received a 25% reduction in his base pay.

During an April 27 quarterly earnings call, the company reported $2.8 billion in losses in the first quarter of this year and a 36% year-over-year drop in revenue. The fourth quarter of 2022 was also tough for Intel: The company reported a $664 million loss and a 32% revenue decline.

Last summer Congress passed the CHIPS & Science Act, a $280 billion bipartisan spending package intended to boost domestic semiconductor production. The bill includes $52 billion in subsidies for microchip manufacturers.

Intel is actively vying for CHIPS funding, and Oregon leaders are hopeful that a chunk of that funding could benefit the state, although the company has most recently announced decisions to expand in Arizona and Ohio.  

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