Intel is more likely to slash factory jobs in the new era of retrenchment starting from July.
Intel has announced another round of pruning, which will affect the factory workforce this time.
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In short
- Intel to start major job cuts in mid-July, first under CEO Lip-Bo Tan
- Part of strategy pruning strategy to streamlin and promote competition
- Details on affected roles and sites are unknown
Intel is preparing to implement significant job cuts at its manufacturing sites starting from mid-July, marking the decrease in its first major workforce, Lip-Bo Tan played the role of Chief Executive Officer in March. Sorting, which is expected to end by the end of the month, becomes a part of a broad strategic overhaul as the company tries to streamline operations and accelerate its competitive edge in the global semiconductor field.
An internal memorandum reviewed by Oregonian/OregonaliveThe timeline for the trimming was confirmed, but stopped the specific details on the number of affected positions or the number of accurate places. According to sources familiar with the case, individual business units are given autonomy in the management of deductions, provided that they complete the financial benchmark established by the senior leadership.
The company has implicated the required cuts for its ongoing changes. In a statement, Intel explained, “By removing organizational complexity and empowering our engineers, we will be able to better meet the needs of our customers and strengthen our execution.” This further emphasized that these decisions were made after “careful ideas” and pledged that the employees affected by the retrench would be treated with “care and respect”.
This step reflects the increasing pressure on Intel to constantly resolve challenges, including falling demand in PC and laptop areas, eradicating sales figures, and intense competition in chip construction, especially in artificial intelligence (AI) location. Contestants such as Nvidia and AMD have moved forward in AI-centered hardware, a domain where analysts have repeatedly pointed to Intel’s vulnerability.
While this latest round of excesses represents the first led to Tan, it follows a difficult recent history for Intel’s workforce. In 2023, the company dropped around 15,000 posts under the then CEO Pat Jingar, including about 3,000 jobs in Oregon alone. Despite these cuts, Intel remains the largest private sector employer in Oregon with an estimated 20,000 employees located in Washington County.
Speculation over the adjacent pruning has been moving between the Oregon-based employees of Intel since April, when tan, during an investor call, for potential cuts, but avoided to reveal the nuances or outlines a complete strategic plan. This lack of clarity has promoted increasing frustration among employees, who have expressed concern over what has experienced inadequate transparency from senior management.
Unlike its predecessor, Tan has maintained a particularly low public profile since Tan stepped into the role of CEO. Nevertheless, they are expected to unveil a comprehensive change blueprint later this year. Those who monitor the industry estimate that the scheme will give priority to strengthen the manufacturing capabilities of Intel, expand its AI footprint and restore investors’ confidence, it would be better to keep the firm in position to navigate the fast competitive semiconductor landscape to all.
As Intel begins this difficult phase of its restructuring, the company’s long -term strategy will probably come under intensive investigation from both employees and market analysts in the front months.