Intel’s decision to lay off over 2,000 employees across the U.S. is part of a broader restructuring initiative aimed at reducing costs by $10 billion amidst declining demand and increased competition from companies like AMD and Nvidia. Oregon will see the largest hit, with around 1,300 layoffs, followed by Arizona (385), Texas (251), and California (219). This downsizing is part of a global plan announced by CEO Pat Gelsinger in August, which aims to reduce Intel’s workforce by a total of 15,000 jobs worldwide.
Gelsinger’s strategy also includes separating Intel’s chip manufacturing and design operations, a move designed to streamline operations and allow the manufacturing division to seek external financing independently. This restructuring is intended to make Intel’s manufacturing arm more competitive with third-party manufacturers. Intel has also paused several international manufacturing projects, including factories in Germany, Poland, and Malaysia, to conserve resources during this challenging period.
In addition to these operational changes, Intel has brought on new leadership, including the appointment of Dave Guzzi as the global channel chief. Guzzi is expected to enhance Intel’s relationships with its partners as part of a new regional engagement model set to be implemented by 2025.
These layoffs and structural shifts reflect Intel’s response to both economic pressures and the evolving semiconductor industry, as it works to secure its long-term competitiveness.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The layoffs and restructuring efforts at Intel are subject to change based on market conditions and company strategy. For detailed financial analysis and guidance, please consult a financial advisor or industry expert.
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