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Intel to undergo new round of layoffs but fate of New Mexico jobs unclear
Intel in Rio Rancho. The company declined to comment on how plans for more than 20% staff layoffs could affect New Mexico workers.
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Intel’s new chief executive announced Thursday that another round of layoffs is coming soon.
It’s part of a company revamp plan from CEO Lip-Bu Tan, who last month took over as chief executive following the December departure of Pat Gelsinger. The new layoffs will follow 15% staff cuts last year in response to mounting pressure in the competitive semiconductor industry, where rivals like Nvidia Corp. have gained significant ground.
The layoffs will begin in the second quarter. Tan didn’t specify the number of jobs on the chopping block, but Bloomberg News reported this week that the chipmaker intends to cut more than 20% of its workforce.
An Intel spokesperson declined to comment on whether the planned layoffs will impact New Mexico workers.
The New Mexico Department of Workforce Solutions hadn’t received a Worker Adjustment and Retraining Notification — a 60-day notice sent ahead of mass layoffs — as of Wednesday afternoon, spokesperson Stacy Johnston said.
“This is not a quick fix,” Tan told investors Thursday in an earnings call.
Intel reported $12.7 billion in first-quarter revenue on Thursday, higher than analysts expected. While Tan said it’s a “step in the right direction,” the company still plans to shrink its operating expenses and capital structure moving forward.
Intel will also start requiring workers to be in office at least four days a week, up from three days a week, in September, Tan said.
The end goal of a company rehaul, Tan said, is to make Intel more competitive and profitable, adding that Intel could “embrace some of the more disruptive technology that is out there” in the short term.
“We are seen as too slow, too complex and too set in our ways — and we need to change,” Tan said in his memo. “... Intel was once widely seen as the world’s most innovative company. There’s no reason we can’t get back there, so long as we drive the changes needed to improve. It’s going to be hard. It will require painful decisions.”
