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Intel has confirmed staff cuts, but has not said how many jobs are involved or in which business units. The chip giant said in a statement to Tom’s Hardware that it is “working to accelerate its strategy as it navigates a challenging macroeconomic environment,” and is “focused on identifying cost savings and efficiency gains through multiple initiatives, including a number of company- and job-specific headcount reductions in areas across the company.”
Intel announced plans to cut costs by $3 billion this year and $10 billion by the end of 2025. Sources told Bloomberg the company could lay off thousands of employees as part of the layoffs. Regulatory documents seen by Tom’s Hardware show that more than 500 employees have been laid off in recent months at Intel’s research and development center in Folsom, California. The Oregonian reported that the company’s Oregon workforce has also been hit by layoffs, though to a lesser extent.
Intel’s cost-cutting measures come at a time when sales are under pressure due to slowing demand for chips and fierce competition. The company is also aiming to reduce costs by rolling out five new chip manufacturing processes, or nodes, over four years, with the Intel 4 process being the first to use extreme UV lithography, or EUV technology. Intel is looking to grow in the fabs market, a segment it entered a few years ago, which is expected to reach $200 billion by the end of the decade and chip spending to reach $1 trillion per year over the same period.
Intel CEO Pat Gelsinger has stated that the even more advanced production technology that will be rolled out after the two nodes is on track.