Struggling Intel lays off 2,000 employees in the US — 13,000 more job cuts to come

Intel has been sailing in troubled waters ever since ARM-based processors and NVIDIA took the world by storm. Once synonymous with computing prowess, the company is now struggling to parse its way forward. Intel, whose stock plunged by nearly 60% this year (Year-to-Date), has embarked on its latest retrenchment effort — 15,000 layoffs starting this week.

???? Following the departure of employees who opted for early retirement at the end of September, #Intel is now said to enter a peak phase of its layoffs this week, moving forward with its plan to cut 15,000 jobs! ????More: https://t.co/H3r4i3r3BC ????

— TrendForce (@trendforce) October 14, 2024

The move is part of CEO Pat Gelsinger’s plan to cut costs by $10 billion as the once top dog in the chipmaking business struggles for survival amidst a battle for relevance.

On Thursday, October 17, Intel cut more than 2,000 jobs in three locations in the United States — 1,300 in Oregon, 385 in Arizona, and 319 in California. The company also plans to lay off 251 employees in Austin, Texas, according to a notice issued under the US Worker Adjustment And Restraining Notification Act, which mandates that companies inform employees of mass layoffs.

Also read: Why the world’s OG chip maker is in dire straits

Losing one’s job is never easy to swallow, but some employees appear to have taken it in their stride, going on social media to look for job opportunities.

Another restructure, another round of layoffs. This time it’s my turn to say goodbye. I’m so proud of this team and so very proud of myself for everything we accomplished at Intel. I’ve never worked so hard or learned so much, and I’m ready for what’s next. pic.twitter.com/LPm1Dl5xts

— Matthew Hayes (@MatthewFace) October 15, 2024

Others tried to give it a political spin, linking this to the Biden administration and next month’s US Presidential Election.

Tell us again about Kamala’s plan for the economy she has helped to destroy…

Breaking: Intel Mass Layoffs, Walgreens Closing Stores (Video)https://t.co/lItUsV7qce pic.twitter.com/swMv2r28SU

— Tammy Stodghill (@StodghillT67331) October 17, 2024

Intel to cut nearly 400 jobs in Arizona as part of wider layoffs Intel Corp. is laying off hundreds of workers in Arizona as part of the chipmaker’s overall plans to cut 15,000 jobs globally.

VOTE , VOTE VOTE

— Diana Shoshone #AZINVASION (@DianaShoshone) October 17, 2024

Others still tried to help those in distress, offering tips, advice or leads on landing a job at the earliest.

An Intel spokesperson told American media outlet CRN that these layoffs are part of Gelsinger’s plan, which he announced in August/September..

“As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce. These are the most difficult decisions we ever make, and we are treating people with care and respect,” the spokesperson told CRN in a statement.

In a letter to employees on September 16, Gelsinger said, “As we continue acting with urgency to execute the plan we announced last month, we are also working to carefully manage our cash as we meaningfully improve our balance sheet and liquidity … All eyes will remain on us. We need to fight for every inch and execute better than ever before. Because that’s the only way to quiet our critics and deliver the results we know we’re capable of achieving.”

Intel has experienced a sharp turn in its fortunes in recent years. The company, which just three years ago earned thrice as much as reigning chip champion NVIDIA, is expected to post just half of NVIDIA’s revenue in 2024. The company suffered a net loss of $1.61 billion last quarter, with analysts predicting further losses in the coming year.

Thursday’s development follows a broader trend in the tech industry, where companies are adjusting their workforces in response to economic pressures. On October 17, social media giant Meta let go of an unspecified number of employees.

“Today, a few teams at Meta are making changes to ensure resources are aligned with their long-term strategic goals and location strategy,” company spokesperson Dave Arnold told The Verge, without divulging the number of cuts.

Crunchbase News estimates that tech companies have fired more than 320,000 people since the start of 2023.

Also read: Meta layoffs: Employees face jobs cuts at WhatsApp, and Instagram, The Verge reports