Intel Layoffs 2017
Intel Corporation (NASDAQ:INTC) cut its headcount in the states of California and Oregon by approximately 250 employees over the course of 2017. These Intel layoffs in 2017 are part of a bigger plan to reduce overall spending.
While the company has experienced growth thanks to success from its data center business, the chipmaker has fallen somewhat behinds its peers as sales of its desktop and laptop computers fell, leaving the company forced to adjust. Intel’s layoffs in 2017 could be seen as a result of that reorganization.
Hundreds of Job Cuts to Be Made Next Year in Oregon
In October, Intel began informing staff from its Hillsboro, Oregon-based Finance division that many would lose their jobs in early 2018. Staff were previously warned these cuts would happen in the summer, with Intel chief financial officer Bob Swan having announced the intention to reduce the division’s expenses by 20% to 30%.
Historically, the finance department has maintained around 1,400 employees. If Swan chooses to go the route of layoffs for the entirety of the 20%-30% reduction, hundreds of employees could leave the company. What’s worse, the company is offering much less via its severance package than it did the year prior. However, the employees to be let go were given advance warning so they could find a new job before the termination of their current one.
Another Oregon department that saw a reduction in the headcount was Marketing, with sources claiming anywhere from dozens to 100 people were handed pink slips.
147 Employees Laid Off in Santa Clara
In total, roughly 140 jobs were eliminated from Intel’s Internet of Things division over the course of 2017. Ninety-three of the affected employees were located at the company’s headquarters in Santa Clara, California, with the remainder in Ireland.
Even though the company’s revenue from the division grew by 11% in the first quarter of 2017 compared to the same period the prior year, job cuts were still made. Keep in mind that Intel is actually abandoning the wearables, smart speakers, and robotics portions of its IoT business, with the division instead focusing on the cloud.
These were not the first layoffs in Santa Clara, with 54 employees being let go on January 13. The impacted employees continued to work for Intel for a few more weeks, until February 24.
Conclusion: Intel Layoffs 2017
Looking at the big picture, 2018 should continue to see more layoffs from the major chipmaker. In fact, it’s likely that the year will see an even higher amount of job cuts overall if chopping the finance department this year by at least 20% is any indication.
It is very difficult to tell exactly when Intel Corporations’ job cuts will stop. Since the company works in the technology sector, changes in the industry could continue to cause job cuts for years to come as AI and automated systems continue to replace human employees. What’s more, some sources have implied that there are other ways for Intel to save money, which would reduce the number of future layoffs.
Note that Intel’s layoffs for 2017 are just a portion of the IT layoffs that occurred throughout the year.
“Intel trims marketing, finance jobs but Oregon workforce is near all-time high,” The Oregonian, April 14, 2017.
“WARN Report,” State of California Employment Development Department, last accessed December 11, 2017.
“Intel begins layoffs in finance group,” The Oregonian, October 19, 2017.
“Intel slashes nearly 140 jobs after dropping IoT product lines,” FierceWireless, July 5, 2017.