Chipmaking giant Intel is preparing to lay off around 5,500 employees across different US states. This is part of a new wave of job cuts aimed at reducing costs and handling financial setbacks. The layoffs will affect engineers, senior leaders, and back-office staff.
The latest job cuts come after Intel already let go of 15,000 workers earlier this year. The company is now expanding the layoffs beyond its earlier estimate of 4,000 jobs.
Biggest impact in California and Oregon
According to Worker Adjustment and Retraining Notification (WARN) filings, which companies must submit before large-scale layoffs in certain states, Intel’s workforce in California and Oregon will be the hardest hit. In California, the number of job cuts has doubled to 1,935. In Oregon, it has risen sharply to 2,932 – four times the original number.
In Arizona, Intel is planning to cut 696 jobs. All combined, the total layoffs now stand at 5,500 employees, according to a report by The Times of India (TOI).
Intel plans to cut 20% workforce under new CEO
Under new chief executive Lip-Bu Tan, Intel aims to reduce its workforce by 20% to manage expenses. The company is facing strong competition and lagging behind rivals like Nvidia and AMD in the AI chip race. It is also struggling to grow its chip foundry business — making chips for other companies.
In a recent meeting with employees, CEO Lip-Bu Tan admitted that Intel has slipped in global rankings. “20, 30 years ago, we were really the leader. Now… we are not in the top 10 semiconductor companies,” he said, according to a report by OregonLive and The Economic Times.
Intel’s market capitalisation has fallen to around $103 billion, which is less than half of its value just 18 months ago, placing it behind at least 15 other semiconductor companies. In stark contrast, Nvidia reached a $4 trillion valuation last week, fuelled by growing optimism around AI.
At the same time, Intel’s forthcoming chipmaking technology, Intel 18A, may see sluggish adoption. According to a Reuters report, Intel CEO Pat Gelsinger has acknowledged concerns raised by customers over whether they will embrace the new manufacturing process, despite it being designed to rival TSMC’s advanced offerings.
