Intel Layoffs: What You Need to Know?
Why is the reason for Intel layoffs?
Intel Corp. is poised to implement a substantial workforce reduction, potentially affecting thousands of employees, as part of a broader cost-cutting and recovery strategy. Sources familiar with the matter, who wished to remain anonymous, indicated that the announcement could be made as early as this week. Currently, Intel employs approximately 110,000 people, excluding those in units being spun off. The company is scheduled to release its second-quarter earnings report on Thursday.
What is CEO Pat Gelsinger’s Strategy?
Under the leadership of CEO Pat Gelsinger, Intel has been making significant investments in research and development to advance its technology and regain its former dominance in the semiconductor industry. The company had lost ground to competitors such as AMD under previous management. Despite the pending layoffs, an Intel spokesperson declined to comment on the matter.
Following the news, Intel’s stock saw a modest increase of around 1%, reaching $31.11 in late trading. In contrast, companies like NVIDIA Corp. have been thriving by producing high-demand semiconductors for artificial intelligence applications, while Intel continues to grapple with fluctuating demand for its core products, including chips for laptops and desktops.
In a strategic move to bolster Intel’s technological prowess, Gelsinger has embarked on an ambitious plan to construct manufacturing facilities that will produce semiconductors for other chipmakers. As part of this initiative, Intel recently appointed Naga Chandrasekaran from Micron Technology Inc. as the chief global operations officer, tasked with overseeing the company’s manufacturing operations.
This impending workforce reduction is not without precedent. Intel reduced its headcount by approximately 5% in 2023, bringing the total to 124,800 employees by year’s end, following layoffs that began in October 2022. The company has also curtailed spending in other areas, with a goal of achieving up to $10 billion in cost savings by 2025.
Severance Pay for Intel Employees
In Canada, Intel employees who are non-unionized and lose their jobs due to downsizing or corporate restructuring are entitled to severance pay. This severance package can be up to 24 months’ worth of pay, depending on various factors. Employees who do not receive their full severance can seek compensation and are advised to consult experienced employment lawyer to ensure they are treated fairly.
At Whitten & Lublin, our employment lawyers are dedicated to helping individuals understand their legal rights and obtain the compensation they deserve. If you have been affected by recent layoffs at Corus, reach out to us for a consultation through our online portal or by phone at (416) 640 2667 .