Intel Corp. has announced plans to lay off a further 112 employees in Silicon Valley, with 61 job cuts in San Jose and 51 at its Santa Clara headquarters. The layoffs are part of a larger restructuring effort aimed at reducing the company’s costs by $3 billion this year. The affected workers will begin to lose their jobs on March 31 and April 15 in San Jose and Santa Clara, respectively.
This is the third set of local layoffs the company has announced in the last two months, and the director of corporate people and movement team has suggested that more cuts may be necessary. Last month, Intel revealed plans to cut 378 people in Santa Clara.
The company has stated that it is committed to treating impacted employees with dignity and respect. Intel has also recently reduced its dividend by 66% in an effort to conserve cash, following a drop in sales and profits last year, as it prepares to invest billions of dollars in constructing new chip factories in the U.S. and abroad.
Intel’s latest round of layoffs comes amid increasing competition in the semiconductor industry. The company has faced challenges from rival chipmakers, including Advanced Micro Devices (AMD) and Nvidia, which have gained market share in recent years. Intel has also struggled with production delays, which have hindered its ability to release new products in a timely manner.
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To address these challenges, Intel has announced plans to invest heavily in new chip factories and manufacturing processes. The company’s CEO, Pat Gelsinger, has said that Intel aims to become a leader in the production of advanced semiconductor technologies, including 7-nanometer and 5-nanometer chips. Intel has also announced plans to open new chip factories in the U.S. and Europe, as well as to expand its existing factories in Oregon and Israel.
Despite the challenges facing the company, Intel remains a major player in the semiconductor industry, with a market capitalization of over $200 billion. The company’s products are used in a wide range of devices, from personal computers and data centers to smartphones and autonomous vehicles. As the demand for high-performance computing continues to grow, Intel will likely continue to be a key player in the industry, even as it faces increasing competition from its rivals.
