According to a notice filed with state workforce regulators, Intel intends to eliminate 529 jobs in Oregon by July 15. This is the first of several job cuts that would destroy thousands of positions throughout the corporation.
The largest Intel location worldwide is in Oregon. 20,000 people work for the chipmaker at its sites in Washington County, where it conducts sophisticated research, develops new microprocessor generations, and handles a variety of sales, marketing, and administrative tasks.
Intel intends to reduce employment in Oregon at all of its major campuses and in a number of its business divisions. Engineers make up nearly 300 of those being laid off initially.
By job type, managers and developers of cloud software are being laid off the most. Intel is completely laying off 65 software workers in Oregon.
Intel announced last month that it would be laying off 271 workers in California. On Monday, it informed Arizona officials that it would be laying off 172 employees there.
New CEO Lip-Bu Tan has ordered significant cuts to lower Intel’s spending and improve the company’s efficiency amid a protracted sales slump. In order to speed up decision-making and increase Intel’s efficiency, he has emphasized the significance of removing managerial tiers throughout the organization.
Intel stated in a statement on Monday on this week’s layoffs that “removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”
However, there are only 53 managers and seven vice presidents among the 53 people who will be laid off in Oregon.
By far the greatest portion of this week’s layoffs, Intel intends to cut 450 workers at its Jones Farm Campus in Hillsboro. It is a sizable location that houses engineering, software, research, and other business operations.
Intel started individually informing laid-off workers on Monday, but the layoffs may last for weeks. It’s unclear if Intel will notify workers of layoffs for future reductions. Depending on duration of service, the corporation offers severance packages that include extended health insurance and several weeks of compensation.
Up to one in five positions in Intel Foundry, the company’s manufacturing division, including those of factory technicians and researchers, are being eliminated by the chipmaker. One of Intel’s biggest business divisions, it will lead to thousands of layoffs throughout the company.
Additionally, Intel is closing its automotive technology division and terminating the majority of its employees. Although 50 million cars have Intel processors, the automotive industry is not one of the company’s biggest markets.
Additionally, Intel intends to contract with Accenture, a consulting firm that aims to employ artificial intelligence to perform tasks that have historically been performed by people, to handle its marketing division.
Intel has not disclosed the total number of jobs it intends to cut during this year’s layoffs. Through attrition, buyouts, and layoffs, the corporation eliminated 15,000 workers last year. 3,000 jobs in Oregon were among them.
Taiwan Semiconductor Manufacturing Co. (TSMC) is a contract manufacturer that produces chips for Intel’s competitors, such as AMD and those based on designs from ARM Holdings, which have been stealing market share from Intel in the company’s core PC and data center markets. This is the reason why Intel is struggling.
The failure of Intel to create chips for advanced artificial intelligence, a quickly expanding field that is controlled by Nvidia, is equally important.
Over the previous four years, Intel’s efforts to establish its own contract manufacturing business have advanced very slowly, and the company has stated that their new 18A manufacturing technology, which is scheduled for release later this year, has not attracted much external interest.
This report was aided by Kristine de Leon.
–Mike Rogoway writes on the business and technology in Oregon. You can reach him at 503-294-7699 or atmrogoway@oregonian.com.
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Intel will lay off 529 Oregon workers in initial cuts: Here are the positions being eliminated
Intel will lay off 529 Oregon workers in initial cuts: Here are the positions being eliminated
Intel will lay off 529 Oregon workers in initial cuts: Here are the positions being eliminated