Latest news with #IntelFoundry
Yahoo
2 days ago
- Business
- Yahoo
Intel Email Reveals Plan for Deep Factory Cuts
The Oregonian reported that chipmaker Intel plans to lay off up to 20% of its factory workforce, citing an internal email the publication says was verified by four employees. According to the report, Intel informed its employees that the cuts would begin taking effect in July and would impact factories worldwide. Most Read on IEN: Auto Giant Files for Bankruptcy, Blames Tariffs Ship Carrying 3,000 Vehicles Abandoned in Pacific Ocean Yaskawa Moving Headquarters from Illinois to Wisconsin PODCAST: Deere Clears the Air; Battery Factory Halted; P&G Cuts 7,000 Intel reportedly employed about 109,000 workers at the end of 2024, but it remains unclear how many work in Intel Foundry, the company's factory division. The unit's roles range from factory floor technicians to specialized researchers. Intel eliminated approximately 15,000 jobs last year through attrition, buyouts, early retirement offers and layoffs. However, according to The Oregonian, Chief Technology and Operations Officer Naga Chandrasekaran stated in the email that this round of job cuts will involve eliminating specific roles and levels, assessing skills for remaining positions and 'some hard decisions around our project investments.' Those projects include advancing its commercial semiconductor manufacturing and packaging projects in Oregon, New Mexico, Arizona, and Ohio as part of a plan to invest $100 billion in the U.S. However, the company recently postponed the opening of an Ohio factory, originally set to start operations this year. The company now plans to complete construction in 2030. Intel expected to receive $7.86 billion from the U.S. Department of Commerce under President Joe Biden's CHIPS and Science Act to help support the aforementioned projects. The Columbus Dispatch reported that, as of March, Intel has received $2.2 billion, with the remaining funding in question following Commerce Secretary Howard Lutnick's comments that President Donald Trump's administration was renegotiating Biden's grants. Reports of the latest job cuts come after an April Bloomberg report indicated that Intel planned to cut over 20% of its workforce. Intel officials did not confirm the Bloomberg report, but CEO Lip-Bu Tan said the company's strategy included streamlining the organization by eliminating management layers. Shortly after the Bloomberg report, Tan sent a company-wide email criticizing some Intel teams for having eight or more layers of management. He also commented that the company is 'seen as too slow, too complex and too set in our ways.' Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
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Intel reportedly plans to cut factory workforce by up to 20%
US tech giant Intel is reportedly planning to reduce its factory workforce by 15% to 20%, impacting its manufacturing operations, reported OregonLive citing an internal memo. This decision, communicated by vice president Naga Chandrasekaran, aims to address the company's ongoing financial challenges. Layoffs are expected to begin in July 2025, following prior notifications to factory staff, the report said. While Intel has not specified the exact number of affected employees, the company had approximately 109,000 employees at the end of 2024, with a significant portion in its Intel Foundry division. The current layoffs could eliminate several thousand jobs, potentially exceeding 10,000. This follows a previous reduction of 15,000 positions across the company in 2024, including 3,000 in Oregon, where Intel employs around 20,000 individuals, the highest in the state. The layoffs are part of a broader strategy to streamline operations and enhance efficiency, the report added. Intel stated, "Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution." These layoffs will not include voluntary buyouts, with decisions based on investment priorities and employee performance. Intel's recent challenges have been driven by declining sales and increased competition in the PC and data centre markets, alongside difficulties in developing advanced chips for AI applications. In a statement, Chandrasekaran said: "These are difficult actions but essential to meet our affordability challenges and current financial position of the company." In addition to the layoffs, Intel's expansion plans have faced delays, including the postponement of its Ohio factory opening until 2030. The company received $7.9bn in federal subsidies to support its operations, but much of this funding remains uncertain. In March 2025, Nvidia and Broadcom announced the testing of Intel's 18A process, which could result in contracts worth hundreds of millions. "Intel reportedly plans to cut factory workforce by up to 20%" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Intel Foundry layoffs could impact 'more than 10,000' factory workers — one fifth of employees affected by 'enormous cutback'
When you buy through links on our articles, Future and its syndication partners may earn a commission. The first reports about Intel's plans to cut workforce in its manufacturing division starting mid-July emerged last Friday. However, the report lacked specifics, which appear to be quite dramatic as the chipmaker reportedly plans to eliminate between 15% to 20% of its Intel Foundry personnel, which will affect over 8,170-10,890 people globally, reports OregonLive. Naga Chandrasekaran, the head of Intel Foundry, informed staff that the layoffs are necessary to address cost-related challenges and the company's financial position. He stated that reductions would be guided by business priorities, individual evaluations, and decisions around which projects to continue funding. As of December 28, 2024, Intel's workforce comprised 108,900 people, down from around 124,800 people from the previous year. Intel's Silicon Forest Oregon facilities were not spared from layoffs last year, cutting approximately 3,000 jobs while still retaining roughly 20,000 employees. Intel has 15 wafer fabs in production worldwide at 10 locations. Intel does not disclose exactly how many of its employees work in production and related services, though the company says that approximately half of its workforce handles production or production services. The remaining half is distributed across R&D, design, sales, administrative roles, client, data center, and other business units. Keep in mind that other divisions are to face similar 15% to 20% cuts this year. Assuming that around 50% of Intel's personnel are involved in fab operations, that means around 54,450 people. Eliminating 15% to 20% of them means that from 8,170 to 10,890 personnel will be eliminated worldwide. Intel will not offer buyouts or voluntary departures this year, opting instead for selective terminations in an attempt to keep the best employees with the company, the report says. When the 2025 layoffs were announced this spring, the company emphasized that its intention was to reduce the number of management layers and bureaucracy within the company. However, the new report indicates that affected roles may span a range of positions, from technicians working directly on factory floors or under them to tool operators and support personnel. Key roles, such as engineers working on cutting-edge process technologies and skilled technicians managing EUV and High-NA EUV lithography equipment, are vital and unlikely to face layoffs. However, Intel may trim positions made redundant by automation or organizational efficiency. While reducing non-essential roles helps cut costs while maintaining critical expertise in the company, it may also reduce operational agility, slow responses to equipment problems, and increase pressure on remaining employees, which lowers morale and could result in costly downtime. OregonLive notes that federal and state funding are also in question. Intel secured $7.9 billion from the CHIPS Act, receiving $1 billion last year. But the rest of the subsidy package remains uncertain, as the new Trump administration is reviewing ongoing allocations. Separately, Oregon pledged $115 million in public funds, but those are conditional on meeting future hiring and tax revenue targets. If hiring or revenue projections are missed, state funding could be withdrawn. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
Yahoo
3 days ago
- Business
- Yahoo
Intel to lay off up to 20% of Intel Foundry workers
Intel will begin a new round of layoffs next month. The semiconductor giant plans to lay off 15% to 20% of workers in its Intel Foundry division starting in July, according to an internal memo originally reported on by The Oregonian. Intel Foundry designs, manufactures, and packages semiconductors for external clients. It's unclear how many workers this will directly impact. Intel's total workforce was 108,900 people as of December 2024, according to the company's annual regulatory filing. TechCrunch reached out to Intel for more information. This news is not a particular shock. Since Intel's CEO Lip-Bu Tan took the helm in March, he's indicated several times that the company needs to refocus on its core business units, flatten its organization structure, and return to being an engineering-first company. Rumors of these specific layoffs began swirling in April. Tan also told Intel's customers it would spin off its noncore units at the company's Intel Vision conference in March. Intel laid off 15% of its staff, around 15,000 employees, last August. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TechCrunch
3 days ago
- Business
- TechCrunch
Intel to layoff up to 20% of Intel Foundry workers
In Brief Intel will begin a new round of layoffs next month. The semiconductor giant plans to layoff at least 15%, and up to 20%, of workers in its Intel Foundry division starting in July, according to an internal memo originally reported on by The Oregonian. Intel Foundry designs, manufactures, and packages semiconductors for external clients. It's unclear how many workers this will directly impact. Intel's total workforce was 108,900 people as of December 2024, according to the company's annual regulatory filing. TechCrunch reached out to Intel for more information. This news is not a particular shock. Since Intel's CEO Lip-Bu Tan took the helm in March, he's made multiple references that the company needed to refocus on its core business units, flatten its organization structure and return to being an engineering-first company. Rumors of these specific layoffs began swirling in April. Tan also told Intel's customers it would spin off its noncore units at the company's Intel Vision conference in March. Intel previously laid off 15% of its staff, around 15,000 employees, last August.
