The chip giant Intel is preparing for another significant cut in its workforce, according to a series of reports in the American media. According to reports, the company intends to lay off employees in most departments, including the personal computing and chips divisions. The company informed that the round of layoffs will reach the entire company.
The reports of the expected layoffs come against the background of a huge loss of 2.8 billion dollars that the company recorded in the last quarter. It was its biggest quarterly loss ever.
According to reports from analysts in the US, Intel intends to lay off 20% of the employees of two central divisions: Data Center and Personal Computing, each of which employs thousands of workers. These divisions do not have a significant presence in Israel. Intel’s goal is to cut up to 10% of its budget.
The current round of layoffs joins that from last year. Intel Israel was not greatly affected by the wave of layoffs, since a significant part of its activity here is in the factory in Kiryat Gat which is at full capacity, as well as in the development activity.
The company stated in response: “Intel is working to accelerate its strategy while navigating a challenging macroeconomic environment. We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including reducing workforce specific to businesses and roles in areas throughout the company. We continue to invest in the core areas of our business, including global manufacturing operations/our core business, to ensure we are well positioned for long-term growth. These are difficult decisions, and we are committed to treating affected employees with respect.”