Oregon Jobs Could Be Trimmed Despite Intel’s Growth Plans
Intel, Oregon’s biggest corporate employer, has ambitious plans for growth and finding AI solutions. With global deals and significant federal financing channeled from the state in the form of CHIPS funding, the company seems to be streamlining its operations while awaiting a rebound in sales, but it may come at the cost of jobs lost.
See also: Oregon Included In Biden’s $8.5 Billion Intel Computer Chip Plant Funding Plan
Intel’s Longer-Term Growth Plans
Amidst a slowdown in the PC and data center markets combined with fierce competition between Intel and rivals like AMD and Nvidia, in 2022, Intel’s sales fell by 20%, with a further drop of 14% in 2023. Tens of billions of dollars have been committed to building advanced new factories by the company, but investors were cautioned that its turnaround plan will take years, not months.
To contain costs until sales improve, outside investors have been approached to help finance new factories in Arizona and Ireland. Intel’s Israeli-based Moovit plans have seen the postponement of the construction of a new factory in Israel.
Despite falling behind in the booming AI technology market, Intel is looking to capitalize through contracts with rivals that don’t have their own factories, bringing chip-making back to Intel’s plants.
Intel Jobs May be Cut
This week, Intel confirmed they are focused on identifying cost reductions and improving margins, but certain business units will make some function and business-specific workforce reductions in the process.
They didn’t indicate how many jobs would be cut, but insiders say each business unit is making its own decisions on how to reach individual spending targets set by corporate leadership.
Following a succession of job cuts last year, an unspecified number of employees in Intel’s sales and marketing departments were laid off, starting in April. About two dozen employees at Moovit in Israel are also facing layoffs. It’s unclear whether Intel is also laying off more U.S. workers, or if it will be offering a buyout program to staff in select departments.
Despite the layoffs, about 1,000 net jobs were added to Intel’s Washington County campuses in 2023. With 23, 000 workers, Intel is Oregon’s largest corporate employer. Its planned expansion under the CHIPS Act is likely to see an increase in jobs in Oregon, but the company hasn’t set a timetable for this expansion.
After the Intel Reports First-Quarter 2024 Financial Results were published, Intel CEO, Pat Gelsinger, indicated the company is making steady progress and delivered a solid quarter. He said, “We are confident in our plans to drive sequential growth throughout the year as we accelerate our AI solutions.” He also confirmed this week that Intel is well-positioned for long-term growth.
