Technology company Intel plans to cut thousands of jobs this summer, according to several media reports.
The chipmaking giant plans to slash 15% of its workforce, or about 15,000 people, as it tries to compete with other companies such as Nvidia and AMD, the Associated Press reported.
The job cuts come as Intel’s stocks have dramatically fallen.
Its stock fell by 20% in 2022 and dropped another 14% last year, Oregonlive.com reported. Although the company hopes its new factories and new technologies will up the price of its semiconductors, Intel said its turnaround will be years away.
So for now, the company is cutting jobs as a way to save money.
Intel has locations throughout the world, including several in the United States, including Georgia, California, Texas and Ohio.
Intel has a presence in Hudson. In 2023, the company sold its former chip manufacturing facility, which closed a decade earlier, for $12 million to National Development, according to the Worcester Business Journal. Intel continued to operate in other buildings as of last year, the WBJ reported, and the website lists job openings located in Hudson. Intel’s website indicates there were 800 Intel employees in Massachusetts as of January 2022.
Intel CEO Pat Gelsinger said Thursday the company aims to save $10 billion in 2025, the AP reported.
“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” he wrote in a memo. “Our revenues have not grown as expected — and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.”
Gelsinger said Intel will announce an “enhanced retirement offering” for eligible employees next week, the AP reported. He will also offer an application program for employees who voluntarily decide to leave.
“These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career,” he told the AP. “The bulk of the layoffs are expected to be completed this year.”
