Intel Laying Off 100 Employees in Santa Clara
One of the biggest tech companies in America, Intel Corporation, has announced that it will be laying off about 140 employees as it reorganizes its business.
The majority of the layoffs will be taking place at the chipmaker’s corporate headquarters in Silicon Valley. Reports suggest that about 100 employees will lose their jobs at Intel’s Santa Clara, California headquarters. The remaining 40 employees will be let go from Intel’s facility in Leixlip, Ireland.
Intel currently has a workforce of about 106,000 employees worldwide.
The company has decided to scale back production of the chips and boards that fall under its Internet of Things (IoT) business segment. It was expected that layoffs would follow after the company discontinued three of its IoT chips—namely “Joule,” “Edison,” and “Galileo”—earlier this year.
The three discontinued chips were specifically developed as Intel made a big bet on wearable IoT devices like smartwatches and action cameras.
Intel’s Ireland operations, which is nicknamed the “Quark” group, is known for designing and developing the Galileo chip development board. The other two chips, Joule and Edison, have been developed at Intel’s headquarters in Santa Clara.
Intel’s IoT business division is reported to have generated about $721.0 million in revenue in the first quarter of this year. The division’s revenue has grown by 11% on a year-over-year basis. However, the IoT segment by itself only brings in less than five percent of Intel’s total revenue.
The Internet of Things is a technology under which Wi-Fi-connected devices communicate with other devices, similar to how humans talk to each other. Smartphones, televisions, and home security systems—for example—interconnect in an IoT ecosystem and respond to the owner’s preferences or react to changes in the surroundings, instantaneously.
The chips that Intel makes act as the brains of IoT-based devices. That helps the devices process external stimuli.
“Intel axes 140 IoTers in California, Ireland,” The Register, July 5, 2017.
“Layoffs at Intel campus,” The Times, July 2, 2017.