Up to 20% Intel Factory Workforce Potentially Affected by Major Layoffs: Latest Update

In an update on July 17, indications suggest that Intel’s proposed workforce reduction may be underway. According to The Register, notification filings indicate that approximately 2,000 employees from the Folsom and Santa Clara units in California have been laid off, as well as 2,500 from Hillsboro and Aloha in Oregon, and nearly 700 from Arizona. Texas employees have also received warnings of potential layoffs, with reports suggesting hundreds of jobs will be eliminated in Israel.

Originally reported on June 17, Intel announced plans to reduce its workforce by approximately 15-20%, following the laying off of 15,000 workers last year. This move is intended to address the company’s financial struggles amidst stiff competition from Nvidia and AMD. Intel Foundry head Naga Chandrasekaran communicated this decision to employees in a memo on June 17th.

The chipmaker, which had 108,900 employees at the end of 2021, could see up to 8,000 to 11,000 jobs eliminated next month if half of its workforce are factory workers. The possibility of buyouts for affected employees, as was offered during last year’s layoffs, may not be extended this time around, according to OregonLive.