Intel, the tech giant known for its computer processors, has announced a significant reduction in its workforce at its Gordon Moore Park facility in Oregon. The company is laying off 1,300 employees from this site as part of a broader plan to reduce its global workforce by 15,000 workers.
This move affects over 5% of the workforce at Intel's Oregon location, making it one of the largest layoffs in the state's history. The affected employees have been notified and given until next month to vacate their positions.
The job cuts at Gordon Moore Park are just a fraction of Intel's overall workforce reduction strategy. Earlier this year, the Oregon site employed approximately 23,000 workers. With the planned 15% reduction, this number could drop below 20,000. The 1,300 layoffs announced represent less than half of Intel's target reduction for the site, suggesting that more job losses may be on the horizon.
Other divisions within Intel are facing even more severe cuts. The Sales and Marketing Group, for instance, is seeing a 35% reduction in costs, putting numerous jobs and programs at risk.
These workforce reductions come in the wake of Intel's recent financial struggles. In August, the company reported a $1.6 billion loss, attributed to falling behind in the AI technology race and issues with its latest CPU generations. To address these challenges, Intel is not only cutting jobs but also considering selling off assets and putting certain projects on hold.
Despite these setbacks, Intel is pursuing other avenues for financial support. The company is on track to receive an $8.5 billion direct funding award from the U.S. government's CHIPS Act by the end of the year. Additionally, Intel has confirmed a $3 billion award for its Secure Enclave project, which will allow it to supply advanced 18A chips to the Pentagon.
As Intel navigates these challenging times, the tech industry watches closely to see if these measures will help the company regain its competitive edge in the rapidly evolving AI and chip manufacturing landscape.