2,000 Jobs Gone: Intel Goes for Mass Layoffs in California, Oregon, Arizona

Intel crisis: The California-based chipmaker is set to lay off over 2,000 workers across the US as part of cost-cutting measures. As per reports, the job cuts will affect roughly 1,300 employees in Oregon, 385 in Arizona and 319 in California. Even the state of Texas is expected to witness over 250 layoffs.

According to a company source cited in a report by CRN, these layoffs are part of the larger 15,000 job cut plan announced by Intel CEO Pat Gelsinger in August this year. At that time, Gelsinger had signalled that the layoffs were intended to reduce costs by more than $10 billion. The company has been experiencing massive financial challenges in past years as the competition in the tech space continues to intensify.

On year-to-date basis, the share price of Intel has plummeted by over 50 per cent on NASDAQ.

“As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce. These are the most difficult decisions we ever make, and we are treating people with care and respect,” the source cited in the report said.

For Intel, these layoffs are only a part of the larger plan of the company to improve the chipmaker's profitability and competitiveness.

The broader plan involves postponing the opening of new facilities outside the US, establishing Intel's contract chip manufacturing business as an independent subsidiary, and reaffirming its commitment to the x86 strategy.

Layoffs Continue to Haunt the Tech Industry

Massive layoffs continue to haunt the tech space across the world as major companies undergo restructuring and reevaluate their revenue models. Earlier this week, even the tech giant Meta announced massive layoffs in its subsidiary companies, Instagram and WhatsApp.

Other big industry players such as Microsoft, Cisco, Apple, Brave and Scale.AI have also announced massive job cuts.

For Intel, these cuts could be quite concerning for the company as it faces increased competition in the chip industry, especially with the rise of Nvidia, which has now become a favorite on Wall Street.