Intel cutting thousands of jobs 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

Impact in Canada

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

Next steps for Intel employees

If you’re fired or let go from Intel, understanding your legal rights is crucial.

Non-unionized employees in Canada’s tech industry are entitled to severance pay. The amount you’re owed is based on a variety of factors, including your role, tenure, age, and ability to find similar work.

WATCH: Employment lawyer Lior Samfiru delves into severance pay on an episode of the Employment Law Show.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Don’t sign any severance offer or termination papers until you contact our team to discover your rights. Read our blog on severance offers and deadline extensions to learn more.

Major employers cutting staff

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? Contact us

If you’re fired or let go from Intel for any reason, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.