The first reports about Intel’s plans regarding the limitation of labor in the production department started in mid -July appeared last Friday. However, the report lacked details that seem quite dramatic, because the chip manufacturer is supposedly planning to eliminate 15% to 20% of Intel Foundry staff, which will affect over 8 170-10 890 people around the world, reports around the world, reports around the world OregonLive.
Naked Chandrasekaran, head of Intel Foundry, informed the staff that the exemptions are necessary to solve the challenges related to the company’s costs and financial situation. He stated that reductions would be directed by business priorities, individual assessments and decisions around which projects continue financing.
As at December 28, 2024, Sorca Intel covered 108,900 people, from about 124,800 people from the previous year. Devices at Forest in Oregon Intel were not saved last year from dismissals, reducing about 3,000 jobs, while stopping about 20,000 employees.
Intel has 15 tiles in production around the world in 10 locations. Intel does not reveal exactly how many employees work in production and related services, although the company says it About half of the workforce support production or production services. The remaining half is distributed as part of research and development, design, sales, administrative roles, client, data center and other business units. It should be remembered that other divisions are to face similar from 15% to 20% of cuts this year.
Assuming that about 50% of Intel staff take part in FAB operations, which means about 54,450 people. Eliminating 15% to 20% of them means that from 8170 to 10 890 staff will be eliminated worldwide.
Intel will not offer redemption or voluntary departures this year, instead choosing selective notice to maintain the best employees in the company, says the report. When exemptions were announced in 2025 this spring, the company emphasized that its intention was to reduce the number of management layers and bureaucracy in the company. However, the modern report indicates that the affected roles can include a number of items, from technicians working directly on factory floors or under them, to tool operators and support staff.
The key roles, such as engineers working on the latest procedural technologies and qualified technicians managing devices for EUV and High Auv lithography, are necessary and unlikely to stand before dismissals. However, Intel can cut unnecessary positions due to automation or organizational performance. Reducing irrelevant roles helps reduce costs while maintaining critical specialist knowledge in a company, it can also reduce operational agility, tardy reactions to equipment problems and escalate pressure to other employees, which reduces morale and can cause costly downtime.
OregonLive notes that federal and state financing is also questioned. Intel secured $ 7.9 billion against the Chips Act, receiving $ 1 billion last year. But the rest of the subsidy package remains uncertain because the modern Trump administration reviews the ongoing allocation. Personally, Oregon promised $ 115 million in public funds, but they depend on the achievement of future employment and tax goals. In case of omission of employment forecasts or revenues, state financing can be withdrawn.
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