Intel Corporation announced today that it will cut 15,000 positions, approximately 15% of its global workforce, in a sweeping performance-based reduction under CEO Pat Gelsinger. The move marks the largest single layoff in Intel’s recent history and comes as the chipmaker grapples with slowing PC demand and mounting competition in the semiconductor industry.
Scope of the Cuts
According to Intel’s official statement, the layoffs will primarily affect:
- Factory and Assembly Operations: 9,000 roles, including assembly-line technicians and test engineers
- Corporate and Support Functions: 6,000 roles across human resources, marketing, and administrative teams
- Geographically, the reductions are spread across Intel’s largest sites—Oregon, Arizona, Ireland, and Malaysia.
Gelsinger’s Rationale
In an internal memo obtained by Oregon Business, CEO Pat Gelsinger said:
“These actions, though difficult, are necessary to align our cost structure with market realities and ensure we invest in our highest-potential businesses.”
Gelsinger emphasized that performance metrics guided the selection process, with managers identifying roles that did not meet productivity or strategic growth criteria. “We must focus on our core strengths—advanced manufacturing and next-generation chips,” he added.
Industry Context
Intel’s shares have fallen 8% year-to-date as PC shipments decline and rivals like AMD gain market share. In Q2 2024, Intel reported a 10% drop in revenue from its Client Computing Group, its largest division. Analyst Sarah Chen of TechInsights noted:
“Intel’s legacy foundry business is under pressure. These cuts are about survival—shifting resources toward AI and data-center chips where margins are higher.”
Social Media Reactions
The announcement sparked immediate responses on social platforms, with employees and industry watchers voicing concern:
Reddit (r/Intel):
“15,000 people out overnight. No warning. It’s brutal. People I know are scrambling for severance details and looking at unemployment.”
LinkedIn Post by Former Employee (@janedoe):
“I’ve spent 5 years building tools for manufacturing operations—today I got the pink slip. Intel, you owe your people clarity and support.”
Twitter / X Reaction:
Tech journalist @ChipInsider tweeted: “Intel’s Q2 miss was bad, but 15% workforce cut is a shocker. Will this save them or further erode morale?”
Severance and Support
Intel confirmed that impacted employees will receive:
- Six weeks of pay plus two weeks for every full year of service
- Continuation of health benefits for three months
- Job-search assistance through third-party outplacement services
Looking Forward
This performance-driven layoff sets the stage for Intel’s pivot to high-margin markets. Gelsinger’s next challenge will be to maintain morale and accelerate development of AI-focused processors, a sector where competitors like Nvidia have leapfrogged Intel in recent quarters.
As one industry insider put it:
“Cost-cutting alone won’t restore Intel’s leadership. They need breakthrough products—and soon.”
Intel plans to complete notifications by mid-September and will report its updated headcount in the Q3 earnings release scheduled for October 2024.
