A leaked internal memo reveals Intel is planning to cut its research and administrative budget by $300 million this year. It's unknown how many jobs will be affected but if the news is correct, cuts will begin June 15 and conclude one month later.
A list of affected employees was reportedly finalized on May 29 and the main criteria are said to be employee ratings in the firm's annual review process and other performance evaluations. The memo explains the chip giant wants to keep expenses flat in response to disappointing sales.
"This means that we'll prioritize investments, slow down hiring, and drive other efficiencies, including a performance-based involuntary separation package," reads the memo, which was just distributed to Intel managers.
The memo doesn't specify how many people will lose their jobs, but said the cuts will begin June 15 and conclude one month later. It indicates Intel has already identified employees who will lose their jobs, but hasn't notified them.
"We need to reduce overall spending for the second half of the year," the memo reads. "Some of this will come from reductions in employment and some from other spending cuts. Employee reductions will vary by business group."
Here is a chart showing the fluctuation in Intel's global workforce since 2000: