Intel Corp announced a reduction in its workforce by 20%, affecting over 20,000 employees globally, including significant cuts in California and Oregon. CEO Lip-Bu Tan indicated a decline in the company's market leadership and acknowledged that Intel is not currently among the top 10 semiconductor firms. Intel's employee count has been decreasing since 2022, impacted by lagging sales and challenges in semiconductor manufacturing for AI products. The layoffs will take effect in mid-July, affecting several locations.
"Twenty, 30 years ago, we were really the leader. Now I think the world has changed. We are not in the top 10 semiconductor companies," Tan told employees during a recent internal meeting.
According to reports from Reuters and other international media today, Tan recently told employees, "the gap has widened too much to catch up with leading AI companies like NVIDIA."
Intel employment has dropped steadily since 2022, from 131,900 to 124,800 in 2023, and to 108,900 in 2024, as sales have lagged and manufacturing of semiconductors... has failed to meet the growing demands of the technology industry.
In California, the permanent layoffs, set to take effect July 15, will impact six locations in Santa Clara, with more than 400 positions eliminated, and another 174 employees in Folsom.
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