Intel to lay off 5,000 employees as chip demand declines
What's the story
Intel has announced plans to lay off around 5,000 employees as part of its cost-cutting strategy. The majority of the layoffs will take place in California and Oregon. The decision comes as new CEO Lip-Bu Tan acknowledges the company's declining x86 dominance and its lack of presence in the GPU market.
WARN filings
Notices detail layoffs in California and Oregon
The impending layoffs were detailed in Worker Adjustment and Retraining Notification (WARN) notices, which are mandatory filings some states require when large companies lay off employees. The documents show that nearly 2,000 employees will be laid off at Intel's Folsom and Santa Clara sites in California. An additional 2,500 workers will be affected at Hillsboro and Aloha in Oregon.
Broader impact
Layoffs also hitting Arizona, Texas, and Israel
The layoffs aren't restricted to California and Oregon. In Arizona, local media reports indicate that the number of job cuts will increase from an earlier estimate of 170 to nearly 700. Employees in Texas are also reportedly being told their positions are no longer needed. The layoffs have also reached Intel's Israeli fabrication business, with hundreds of employees set to be let go.
Corporate statement
We are becoming a leaner and faster company: Intel
In an email dated July 9, Intel said it is "taking steps to become a leaner, faster and more efficient company." The tech giant added that "removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution." This latest round of layoffs takes Intel's total job cuts over the past year to more than 20,000.