Thread regarding Intel Corp. layoffs

Chip giant Intel Corp has started the layoffs CEO Pat Gelsinger has been alluding to for weeks.

Employees started to be notified about position elimination at least a week ago according to posts by those affected on LinkedIn. The cuts appear widespread across the company’s footprint including Oregon, Sacramento, Arizona and Israel as well as across functions including software, strategy, human resources and administration.

The company (Nasdaq: INTC) did not comment on the workforce reduction or offer any details on number of roles affected or where. Instead it pointed to Gelsinger’s comments from its third quarter earnings:

“Despite the worsening economic conditions, we delivered solid results and made significant progress with our product and process execution during the quarter,” Gelsinger said. “To position ourselves for this business cycle, we are aggressively addressing costs and driving efficiencies across the business to accelerate our IDM 2.0 flywheel for the digital future.”
It did note "some business and function-specific workforce reductions in areas across the company. These are very difficult decisions, but we are taking these actions to ensure we are well-positioned for long-term growth."

It’s unclear how many people are affected. An October report from Bloomberg said the cuts could be in the thousands and some divisions could see up to a 20% reduction.

Layoffs would start in the fourth quarter, Gelsinger told Reuters in October.

The company also pointed to CFO David Zinsner's third-quarter comments on its strategy for driving between $8 billion and $10 billion in structural cost savings by the end of 2025.

"We are focused on driving $3 billion of cost reductions in 2023, one-third of this in cost of sales and two-thirds in operating expenses. Longer term, we will look to drive continued structural cost savings and efficiency gains, which we expect to drive $8 to $10 billion in annual savings by the end of 2025 — two-thirds of this in cost of sales and one-third in operating expenses," it said in an email statement.

These savings include: honing product and IP portfolio; reducing consultancy and vendor spend; minimizing non-critical projects, travel and discretionary spend; optimizing the real estate footprint, in line with its hybrid working model; and right-sizing teams and limiting hiring.

Intel had been on a hiring spree since CEO Pat Gelsinger took over in February 2021 with a mandate to return the company to technological leadership, an edge it lost to Taiwan Semiconductor Manufacturing Co. after several high-profile product execution stumbles.

However, Gelsinger’s plan to heavily invest in manufacturing — including building several new facilities, which in the industry are called fabs — has been hampered by a falling PC market and slowing global economic conditions.

Intel has 121,000 global employees. About half are in the U.S. and of those more than 22,000 are in Oregon. The company has four campuses in Washington County and is the hub of the region’s semiconductor industry.

Despite the current changing economy, the company has been pushing federal and state lawmakers for incentives to help it continue to build fabs domestically. Over the last three decades much of chip manufacturing has moved to Asia. Gelsinger and others have argued a more balanced supply chain is needed for products that are so central to modern life.

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Intel recently completed a $3 billion expansion of its Ronler Acres fab in Hillsboro, where the company does its manufacturing R&D. All new manufacturing processes are developed here and then sent to the company’s other production fabs.

It is in the process of developing an application for federal incentives to create an Advanced Lithography Center to help research new lithography technology that is foundational for making chips smaller.

The last time Intel made significant workforce cuts was 2016, with a major restructuring that cut 11% of the workforce, or 12,000 jobs. Following those cuts, Oregon saw a 1% change in the number of Intel employees. Intel is the state’s largest private employer.

I have Intel friends that were laid off four weeks ago and some that were told they would be notified tomorrow. The thing is they’re doing that voluntary program to sew. Some of the people raise their hand to be laid off and some didn’t.

No new content in the article:
Employees started to be notified about position elimination at least a week ago according to posts by those affected on LinkedIn. The cuts appear widespread across the company’s footprint including Oregon, Sacramento, Arizona and Israel as well as across functions including software, strategy, human resources and administration.

https://finance.yahoo.com/m/9dad0d66-0ee7-393b-b742-67a41c7f0b16/layoffs-start-at-intel.html

Good luck to those who were laid off in the Intel boonies like Hillsbilly. Hopefully you can find some remote work tech job.

https://www.bizjournals.com/portland/news/2022/11/29/layoffs-start-at-intel.html?utm_source=sy&utm_medium=nsyp&utm_campaign=yh

Yes. In RA