Intel Corporation (NASDAQ:INTC) notified employees that their jobs will be cut by early 2018 as part of a broader plan to reduce expenses, reports detail. The Intel layoffs could affect as much as 30% of the finance group, a workforce that numbers 1,400 in the U.S. and several hundred more overseas.
Intel’s chief financial officer, Bob Swan, announced to employees on a webcast that he’s looking to shed expenses within the finance portion of the company by as much as 20% to 30%. While there are other ways to reduce spending besides direct job cuts, a good portion of that reduction will be made via shedding employees. Reports are coming in from workers familiar with the situation. The total number of people on the chopping block has yet to be released.
The cuts were a long-time coming, as employees were warned in the summer that reductions were on the way.
“Honestly, I think we have too many people,” Swan told finance employees in August, according to information obtained by The Oregonian. The CFO went on to say that employees will be cut from the finance group in order to operate more efficiently and meet the company’s spending goals.
These cuts follow the massive staff reduction that Intel underwent last year. The Intel layoffs in 2016 eliminated some 15,000 jobs across the company in order to adjust to a changing market where PC and laptop sales declined. The chipmaker is one of the largest producers by market share and represents one of the bigger declining names in the tech world.
To make matters worse for the leaving workers, the severance packages offered by Intel has been severely reduced. The Intel layoffs of 2016 carried with them a full year’s pay in addition to medical coverage. Workers this year are reporting that they are being offered a relatively meager one week’s pay per year that they’ve been with the company.
The workers are also allowed to shop around for other jobs within the company until January, when the cuts are set to begin.
The Intel layoffs are coming on the back of a strong year for the company on the stock market, even as revenue concerns still remain due to a changing market demand for the company’s chips.
“Intel begins layoffs in finance group,” The Oregonian, October 19, 2017.