In an effort to weather the poor sales and global macroeconomic conditions, chip manufacturer Intel has begun layoffs and is offering three months of unpaid leave to thousands of manufacturing employees worldwide.
According to reports, the company began its anticipated layoffs in California with at least 201 employees as “part of a broader cost cutting effort.”
According to the “Worker Adjustment and Retraining Notifications,” 111 Intel Folsom, California employees will be laid off, and “90 employees will be asked to go from Santa Clara location.
Intel said in October that it would save nearly $3 billion annually in the near future and $8 billion to $10 billion by the end of 2025. The majority of these savings will come from “people costs” in the sales and operations departments.
Intel is providing thousands of manufacturing employees
with three months of unpaid leave, according to another Oregon Live report.
“According to the report, the company was quoted as saying, “Voluntary time off programs give us the opportunity to reduce short-term costs and offer attractive time off options to employees.”
With 22,000 employees employed on its manufacturing, research, and administrative campuses in Washington County, Intel is the largest employer in Oregon.
Last week, the Financial Times reported that a three-month unpaid leave of absence was provided to thousands of Intel employees in Ireland.
During Intel’s Q3 earnings call in October, CEO Pat Gelsinger stated that the business is “responding to the current environment by taking aggressive actions to reduce costs.”
The CEO of Intel had stated, “We need to balance increased investment, but these are difficult decisions that affect our loyal Intel family. Steps to maximize our workforce will be included in our efforts.
According to previous reports, the chipmaker is planning thousands of job cuts, particularly for its sales and marketing teams, as global consumer PC sales decline.