In recent years, numerous large-scale employee layoffs have occurred at technological companies. Statistics show over 25,000 people have been laid off in the worldwide IT sector this year. Microsoft announced plans to eliminate 10,000 employees, or less than 5% of its workforce, this Thursday.
However, in a new development, the American semiconductor giant Intel has been reported to be expanding the scale of layoffs in Silicon Valley. It is understood that hundreds of workers will be laid off. This is an extension of Intel’s effort to cut costs which was first disclosed at the end of last year and involved layoffs.
In a document submitted to the California Department of Employment Development, it was reported by MarketWatch that Intel plans to cut 201 positions in its Santa Clara, California office, effective January 31. There are numerous positions, and Intel acknowledged that some employees had been placed on unpaid leave during this time.
In addition, Intel upped the number of layoffs in Folsom, California, from the 111 positions that had been originally disclosed to 176 positions, which are anticipated to go into effect on January 31. A further 167 positions will be eliminated on March 15.
However, it is further noted that employees may stay if they can find other roles inside Intel. Still, the corporation highlighted that additional layoffs would be planned in the letter Intel sent to the California government.
Meanwhile, it should be remembered that Intel executives stated in October of last year that they intended to cut expenses by $3 billion in 2023 without specifying the number of positions that would be eliminated. As of the end of 2021, Intel had 121,000 employees as of the end of 2021.
Addy Burr, Intel’s spokesman, recently pointed out that the business will maintain cost-cutting efforts while navigating a difficult overall economic climate.