The leading chipmaker and American multinational company announced a major layoff of over 500 employees across the United States. Earlier, it was estimated that the tech company would cut 4,000 workers. The latest layoff figure was estimated by the Worker Adjustment and Retraining Notification (WARN) Act.
The company is shifting towards strategic, targeted team structures that prioritise efficiency over headcount instead of traditional large-scale operations. Oregon and California will witness more cuts than the other US states, as Intel has increased its estimates substantially.
Also Read | Over 1,300 set to be fired as US State Dept reorganises workforce.
In California, the company will sack 1,935 people, double the estimate earlier. In Oregon, the technology firm's largest private employer in the state, the company will likely lay off 2,392 workers, while Arizona will see 696 layoffs, bringing the total tally to over 5,000 jobs across four states.
Intel's new CEO, Lip-Bu Tan, is using a strategy to leaner and model work instead of the traditional method of working in favour of broader industry trends where technology companies are abandoning traditional employment structures.
The US state of Oregon, which has the largest workforce, will be affected by the layoff, which will affect more than 12% of the area's workforce. This will impact engineers working in chip design, cloud software, and manufacturing, as well as several senior leaders, such as business heads and a vice president of IT.
According to a leaked memo, the company's internal foundry division, responsible for chip manufacturing, is expected to bear the brunt of the cuts, with up to 20% of its staff facing job losses, as per local media quoted by the Times of India.
Intel's job cuts will be primarily offered under the voluntary exit schemes or early retirement plans. Impacted employees will be given either a 60-day or a four-week notice, along with severance packages that include nine weeks of pay and benefits.
According to the company, the decision was made after careful consideration, and the company intends to treat impacted employees with care and respect. The CEO, Lip-Bu Tan, said that the company leadership is focusing on a learner workforce approach that involves smaller, high-performing teams and a strategic workforce model.
Intel is also started outsourcing some of its marketing functions to other tech giants, including Accenture to manage customer communications. This move is part of Intel's broader effort to cut costs and increase operational flexibility as it adapts to the evolving tech landscape.