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: Intel begins layoffs and offers unpaid leave to manufacturing workers

The layoffs and cost-cutting that Intel Corp. executives recently warned about have begun in California, with a couple of hundred employees set to lose their jobs next month, and manufacturing employees worldwide being offered unpaid leave.

According to letters Intel
INTC,
-2.33%

sent to the state Employment Development Department, the company is laying off 111 employees in Folsom, Calif., and 90 employees in Santa Clara, Calif., which is home to the chipmaker’s headquarters. The layoffs, which are permanent, are scheduled to begin Jan. 31.

Meanwhile, the company has offered employees at the company’s manufacturing plants in Oregon and elsewhere three months of unpaid leave, according to recent media reports. Intel spokeswoman Addy Burr confirmed Tuesday that the company is offering voluntary time off to its manufacturing employees around the world.

“Retaining our manufacturing talent is a key element of positioning Intel for long-term growth,” Burr said. “Voluntary time-off programs allow us an opportunity to reduce short term costs.”

The layoffs by Intel follow tens of thousands of job cuts announced by other tech giants recently, including Meta Platforms Inc.
META,
-6.54%

and Amazon.com Inc.
AMZN,
-2.77%
,
amid slowing growth, falling stock prices and recession concerns. Other industries are also slashing costs and jobs, including media companies and financial institutions.

See: ‘It was not sustainable or real’: Tech layoffs approach Great Recession levels

In late October, Intel executives told employees, analysts and investors that they plan to cut $3 billion in costs in 2023 as the company reported that third-quarter revenue fell year over year and pruned its full-year outlook. The cost-cutting includes layoffs, although the number of jobs that will be eliminated is not publicly known. Intel had 121,000 employees worldwide as of the end of last year, according to the full-year report it filed with the Securities and Exchange Commission.

The letters Intel filed with the state did not specify the positions that were cut, but the Folsom campus is dedicated to research and development. Burr would not comment on what kinds of positions were affected. She also said Tuesday that the company is slashing costs across the board, including looking at its product and intellectual-property portfolio and its real estate footprint.

Intel stock has declined almost 45% this year. The Dow Jones Industrial Average
DJIA,
-1.36%
,
of which the company is a component, is down about 8% year to date, while the Nasdaq Composite Index
COMP,
-2.25%

has fallen about 30% this year.

Also: VC investors see an ‘R’ word coming for tech — and it isn’t just recession

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