Intel Begins California Layoffs, 'Voluntary Unpaid Leave' Program |  CRN

Intel Begins California Layoffs, ‘Voluntary Unpaid Leave’ Program | CRN

IT news

Shane Snider

The job cuts are likely just the first salvo as the Santa Clara-based semiconductor giant seeks to cut up to $10 billion by 2025.


Intel began its planned layoffs near home with cuts to its California operations totaling 201 people as part of a broader cost-cutting effort, according to letters filed with the state.

The layoffs are due to begin on January 31. According to worker adjustment and retraining notifications obtained by CRN, 111 employees will be laid off at the Folsom, Calif., location, while 90 employees will be laid off from Santa Clara, Calif., where the company is headquartered.

According to Oregon Live, the company is also offering unpaid leave to thousands of factory workers around the world as part of cost-cutting efforts.

[RELATED STORY: Intel CEO Pat Gelsinger On Potential Layoffs, The ‘Unpredictable’ Economy And Consolidation In The Chip Market]

“Retaining our manufacturing talent is a key part of positioning Intel for long-term growth,” the company told The Oregonian in a written statement. “Voluntary leave programs allow us to reduce short-term costs and provide employees with attractive leave options.”

CRN has contacted Intel for further comment.

The Financial Times reported last week that thousands of Intel workers in Ireland have been offered three months of unpaid leave.

Although Intel did not specify which positions would be cut or how many workers would be affected overall, the company signaled to analysts and investors in late October that it would seek to cut costs by $3 billion in 2023 and beyond. to $10 billion by 2025. LinkedIn, several affected employees updated their profiles to “open for work” statuses and commented on their termination – these positions included a senior executive in the artificial intelligence business unit, an executive assistant and a manager-level software engineer.

Intel reported in October a 59% year-over-year drop in net income to $2.4 billion and a 15% year-over-year drop in sales to $15.3 billion. for its third fiscal quarter ended October 1. [situation is] unpredictable, tough market,” Gelsinger said. “It’s just hard to see any good news on the horizon…So in that context, we’re still looking to have some economic headwinds heading into next year.”

Gelsinger said the chip giant is facing tough times and facing “tough” cost-cutting decisions that include a “right-sized” plan to cut $3 billion in 2023 and up to 10 billions of dollars in costs by 2025 to optimize our workforce,” Gelsinger told analysts on a call. “These are tough decisions that affect our loyal Intel family, but we must balance increased investment in areas such as leadership and technology development, products and capabilities in Ohio and Germany with measures to efficiency elsewhere as we strive to have best-in-class structures.

The California layoffs aren’t the only ones affecting workers. Other states are also affected. Shashi Jain, senior chief innovation officer at Intel’s office in Portland, Oregon, wrote on LinkedIn that his position would be cut. “I was part of the recently announced Intel layoffs,” Jain wrote. “Although I have a little time before returning my badge, I am certainly at peace with the process…I had a pretty good run at Intel…”

    Learn more about Shane Snider

Shane Snider

Shane Snider is an associate editor covering personal computing, mobile devices, semiconductor news, hardware reviews, breaking news and live events. Shane is a seasoned journalist, having worked for newspapers in upstate New York and North Carolina. He can be contacted at

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