Intel has begun sending official notices to 1300 workers at its Gordon Moore Park facility, saying their services will be terminated after next month. The massive job cuts are part of the company's plan to cut more than 15% of its workforce in an effort to recover from heavy losses. So, what should you know about it?
For your information, the reductions will affect more than 5% of Intel's workforce in Oregon and will make it one of the largest layoffs in the state's history. These layoffs do not include the number of employees who took voluntary layoffs and early retirement options.
In addition, the company's plight was revealed during its quarterly earnings presentation last August which revealed Intel lost $1.6 billion after falling behind in the AI race and widespread failures in 13th and 14th generation CPUs. Now, the company is fighting for survival, with plans to cut assets and put projects on hold. There are even rumours that Qualcomm is making an offer to Intel to buy part of its business.
Moreover, Intel is keen to secure funding from the Washington CHIPS Act to receive $8.5 billion in direct funding from the federal government by the end of the year, which would give it plenty of breathing room. Even Intel confirmed that it will receive a $3 billion award for the Secure Enclave, which will allow the company to provide its latest 18A chips to the Pentagon.
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