Intel Announces Major Layoffs Amid Financial Challenges
Intel, a legendary name in the tech industry, is preparing to cut 15% to 20% of its factory workforce in July, potentially affecting 16,350 to 21,800 jobs globally. This move comes as the company struggles with increased competition and financial losses.
The decision was communicated to employees via email on Saturday by Naga Chandrasekaran, Intel’s vice president of manufacturing. ‘These are difficult actions but essential to meet our affordability challenges and current financial position of the company,’ Chandrasekaran explained. This latest round of layoffs marks the second significant job cut for Intel within a year, following a 15% workforce reduction in December.
The tech giant has been facing stiff competition from rivals such as AMD, IBM, TSMC, and NVIDIA, who have made significant advancements in AI-capable processors. Intel’s struggles are reflected in its stock price, which has plummeted from over $68 per share in 2021 to just above $21 currently. The company reported an $821 million loss in the first quarter of this year.
Despite receiving billions in federal support through the CHIPS and Science Act, Intel continues to face challenges. The company is awaiting $6.9 billion in federal grants to support factory expansions in several states. However, it has delayed the construction of its Ohio factory until 2030.
This wave of layoffs is part of a larger trend in the tech industry, with other major companies like Microsoft and Amazon also announcing significant job cuts linked to AI integration. Intel’s layoffs will likely have a substantial impact on middle- and high-paying jobs in the US, continuing a shift where college-educated workers are increasingly affected by mass layoffs.
