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The Oregonian reported that chipmaker Intel
plans to lay off up to 20% of its factory
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workforce, citing an internal email the
publication says was verified by 4 employees.
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According to the report, Intel informed its
employees that the cuts would begin taking
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effect in July and would impact factories
worldwide.
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Intel reportedly employed about 109,000 workers
at the end of 2024,
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but it remains unclear how many work at Intel
Foundry, the company’s factory division.
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The unit’s roles range from factory floor
technicians to specialized researchers.
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Intel eliminated approximately 15.
1000 jobs last year through attrition,
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buyouts, early retirement offers, and layoffs.
However, according to the Oregonian,
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Chief Technology and Operations Officer
Nagachandra Sakkaran stated in the email that
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this round of job cuts will involve eliminating
specific roles and levels,
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assessing skills for remaining positions, and
quote some hard decisions around our project
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investments.
Those projects include advancing its commercial
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semiconductor manufacturing and packaging
projects in Oregon,
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New Mexico, Arizona, and Ohio as part of a plan
to invest $100 billion in the US.
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However, the company recently postponed the
opening of an Ohio factory originally set to
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start operations this year.
The company now plans to complete construction
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in 2030.
Intel expected to receive $7.86 billion from
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the US Department of Commerce under President
Joe Biden’s Chips and Science Act to help
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support the aforementioned projects.
Columbus Dispatch reported that as of March,
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Intel has received $2.2 billion with the
remaining funding in question following
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Commerce Secretary Howard Lutnick’s comments
that President Donald Trump’s administration
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was renegotiating Biden’s grants.
Reports of the latest job cuts come after an
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April Bloomberg report indicated that Intel
planned to cut over 20% of its workforce.
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Intel officials did not confirm the Bloomberg
report, but CEO Lipbu Tan said the company’s
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strategy included streamlining the organization
by eliminating management layers.
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Shortly after the Bloomberg Report, Tan sent a
company-wide email criticizing some intel teams
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for having 8 or more layers of management.
He also commented that the company is seen as
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too slow, too complex, and too set in our ways.
I’m Nolan Bastein.
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This is manufacturing now.