Intel has fired more than 2,000 employees in various US states in a major change in its business strategy. The development comes after the company announced mass layoffs in August as part of efforts to deal with financial challenges and increasing competition in the semiconductor industry.

The job cuts will have the greatest impact in Oregon, where Intel employs more than 20,000 people and is the state’s second-largest private employer. Of the 2,000 jobs being cut, about 1,300 are in Oregon, affecting major facilities in Aloha and Hillsboro. These locations are critical to Intel’s US operations, making the impact even more pronounced. Other states to bear the brunt include Arizona cutting 385 jobs, California cutting 319 jobs and Texas cutting 251 jobs. Many employees have shared this news on social media platforms.

An Intel employee commented on Very proud of myself for that. I’ve never worked harder or learned more, and I’m ready to move forward.”

Affected employees will be given either 60 days’ notice or four weeks’ notice with additional pay and benefits to help ease the transition. The layoffs are expected to begin November 15, 2024.

This wave of layoffs is in line with CEO Pat Gelsinger’s broader plan to eliminate more than 15,000 jobs worldwide, part of a bid to reduce operating costs by $10 billion. Gelsinger’s strategy includes transforming Intel into a “thinner, simpler and more agile company”, ensuring long-term stability amid intense competition from rivals such as AMD, Nvidia and global semiconductor makers.

In a letter to employees dated Sept. 16, Gelsinger said, “As we continue to work with urgency to execute the plan we announced last month, we are also working to carefully manage our cash Because we are making meaningful improvements in our balance sheet and liquidity…all eyes will be on us. We need to fight for every inch and perform better than before because that is the only way to silence our critics and deliver results. That’s the way we’ve been able to achieve that.”

Intel is not only cutting jobs, but also delaying opening new facilities outside the US and reorganizing its contract chip manufacturing division. These moves signal a significant shift in the company’s operational focus, aimed at reducing costs and boosting competitiveness in a challenging market.