Intel Layoffs: Thousands of jobs cut to fund $10B rebound strategy

What’s happening at Intel?

Intel is planning to eliminate thousands of jobs in an effort to reduce costs and fund an ambitious rebound strategy following an earnings slump and market share losses.

• The layoffs could be announced as early as this week, according to sources familiar with the company’s plans.
• Intel currently employs approximately 110,000 people, excluding those in units being spun off.
• The company aims to save up to $10 billion by 2025 through spending reductions.

Official statements and context

Intel has not officially commented on the planned layoffs.

• The move aligns with Chief Executive Officer Pat Gelsinger’s strategy to heavily invest in research and development to improve Intel’s technology and regain its competitive edge in the semiconductor industry.
• The company has seen its once-dominant market position erode under previous leadership, losing ground to competitors like Advanced Micro Devices and Nvidia.
• Intel is also facing uneven demand for chips that run laptops and desktop computers, its primary business sector
• The chip maker recently cut jobs by 5% in 2023, following job cuts announced in October 2022.

Leadership changes

CEO Gelsinger is betting on the improvement of Intel’s technology and has initiated a plan to build factories for manufacturing semiconductors for other companies. To bolster this effort, Intel recently appointed Naga Chandrasekaran from Micron Technology as the new Chief Global Operations Officer

Layoffs in Canada

It remains unclear exactly how many Intel employees in Canada will lose their job as a result of this layoff.

Your rights

In Canada, non-unionized employees at Intel are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.