Layoffs looming at Intel amidst PC sales slump?

Posted on Thursday, June 11 2015 @ 13:26 CEST by Thomas De Maesschalck
Intel logo
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:

Intel workforce

Source: Oregon Live

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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