Intel begins layoffs, offers unpaid leave to thousands of employees: Reports – Times of India

Intel has reportedly begun layoffs and is offering thousands of manufacturing employees three months of unpaid leave. The chip-maker is among a number of Silicon Valley giants, including Meta and Twitter that have laid off employees in recent months amid tough global macroeconomic conditions.
Media reports said that the company started the layoffs in California with at least 201 employees as “part of a broader cost cutting effort.” Citing the “Worker Adjustment and Retraining Notifications”, the reports added that 111 employees will be laid off at Intel’s Folsom, California location while “90 employees will be asked to go from Santa Clara location.”
In October, Intel said it plans to save nearly $3 billion annually in the near term. The company’s long term goal is to save $8 billion to $10 billion by the end of 2025. Intel said that these savings will majorly come from “people costs” from both operations and sales departments.

Intel offering unpaid leave
As per a report in Oregon Live, Intel is offering thousands of manufacturing employees three months of unpaid leave. “Retaining our manufacturing talent is a key element of positioning Intel for long-term growth. Voluntary time off programmes allow us an opportunity to reduce short term costs and offer employees attractive time off options,” Intel was quoted as saying.
As per a previous report, thousands of Intel workers in Ireland were also offered three months of unpaid leave.
Fall in PC market hurting Intel
Intel has been hit hard by slump in the global PC market. The PC market, which surged during the past two years due to the rise in hybrid working necessitated by the pandemic, is facing one of the hardest times. This has led to shrink in demand for chips.
Intel is set to receive billions in funding from the CHIPS Act – a package of US government aimed to boost domestic chip manufacturing.