Troubled Intel lays off 2,000 US employees, 13,000 more job cuts loom

Intel has been sailing in troubled waters ever since ARM and NVIDIA-based processors took the world by storm. The company, once synonymous with computing prowess, is now struggling to analyze its path forward. Intel, whose shares have plummeted nearly 60% this year (so far), has embarked on its latest downsizing effort: 15,000 layoffs starting this week.

The move is part of Chief Executive Pat Gelsinger’s plan to cut costs by $10 billion as the one-time leader in the chip-making business fights for survival amid a battle for relevance.

On Thursday, October 17, Intel eliminated more than 2,000 jobs at three locations in the United States: 1,300 in Oregon, 385 in Arizona and 319 in California. The company also plans to lay off 251 employees in Austin, Texas, according to a notice issued under the U.S. Worker Adjustment and Restraint Notification Act, which requires companies to inform employees about mass layoffs.

Also read: Why global chipmaker OG is in dire straits

Losing a job is never easy to accept, but some employees seem to have taken it in stride and are taking to social media to look for job opportunities.

Others tried to put a political spin on it, linking it to the Biden administration and next month’s US presidential election.

Others still tried to help those who were in trouble, offering them suggestions, advice or clues to get a job as soon as possible.

An Intel spokesperson told a US media outlet. CRN that these layoffs are part of Gelsinger’s plan, which announced in August/September..

“As part of the extensive cost savings plan we announced in August, we are making difficult but necessary decisions to reduce the size of our workforce. “These are the most difficult decisions we have ever made and we treat people with care and respect,” the spokesperson said. CRN in a statement.

In a letter to employees dated September 16.Gelsinger said: “As we continue to act with urgency to execute the plan we announced last month, we are also working to carefully manage our cash as we significantly improve our balance sheet and liquidity… All eyes will remain on us. We need fight for every inch and execute better than ever because that is the only way to silence our critics and achieve the results we know we are capable of achieving.”

Intel has seen a sharp turn in its fortunes in recent years. The company, which just three years ago earned three times as much as current chip champion NVIDIA, is expected to post only half of NVIDIA’s revenue in 2024. The company suffered a net loss of $1.61 billion on last quarter, and analysts predict more losses in the next. year.

Thursday’s development follows a broader trend in the tech industry, where companies are adjusting their workforces in response to economic pressures. On October 17, social media giant Meta laid off an unspecified number of employees.

“Today, some Meta teams are making changes to ensure resources are aligned with their long-term strategic goals and location strategy,” the company said. Spokesman Dave Arnold told The Verge.without disclosing the number of cuts.

Crunchbase News estimates that technology companies have laid off more than 320,000 people since the beginning of 2023.

Also read: Meta-layoffs: Employees face job cuts on WhatsApp and Instagram, The Verge reports



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