Intel will say goodbye between 15 and 20% of the template for chips production (Intel Foundry), according to a memorandum filtered on the Internet. The measure could mean the Elimination of more than 10,000 jobs and is part of a broader project to optimize operations in the face of the fall in sales and growing competitive pressure.
Intel goes through the worst moment of his long history. Nvidia eats land month by month in data centers with their accelerators for AI, just like AMD does it with its processors for servers and PCs. And even worse. The threat that is arriving from ARM in client computing is colossal and if confirmed it can end the monopoly of architecture X86 dominated by Intel for decades. Not to mention the loss of investor confidence and technological level, something that had never happened in the chip giant.
The month of April we learned about Bloomberg information that the company planned mass layoffs as part of a large reorganization processes initiated by the new executives with the CEO Lip-Bu so at the head. But no number and the affected divisions had been specified. Now more information comes to us and as they feared they are not good news.
«These are difficult, but essential measures to face our challenges of affordability and the current financial situation of the company. They are suffering for all«wrote the manufacturing vice president of Intel, Naga Chandrasekaran, to employees last weekend, adding that the company foresees employment cuts of Between 15 % and 20 %most of which will be implemented in July.
“Eliminate organizational complexity and empower our engineers will allow us to better meet the needs of our clients and strengthen our execution”said the company. “We make these decisions after careful consideration of what is necessary to position our business for the future”.
Bad news for Intel Foundry
Although it is not known how many employees work in the manufacturing division, Intel had 109,000 employees at the end of 2024, so it is believed that layoffs will exceed 10,000. The foundry business includes a wide range of works, from factory technicians to specialized researchers who work years in advance to develop future generations of microprocessors.
The layoffs of next month will be carried out in the Intel factories around the world, but they could have an especially significant impact in Oregon, the heart of the company’s manufacturing plant. The chips manufacturer uses 20,000 people in the state, more than any other corporation.
It should be noted that Intel eliminated 15,000 jobs in 2024 In response to a prolonged sales fall and a gloomy panorama in the short term, driven by intense competition in the PC sector and data centers, and by the company’s inability to develop advanced chips for the flourishing market of artificial intelligence.
Intel also plans important cuts in other areas of your business, but the loss of workforce can endanger the ambitious Intel Foundry project to make chips for third parties and under all architectures.
