Intel is offering buyouts and early retirement packages to employees as part of its restructuring efforts, with layoffs set to begin in October.
Why it matters: The chipmaker is adapting to the evolving demands of the technology sector, and these measures will have a significant impact on its workforce and operations.
The details:
- Buyouts range from 13 weeks of pay to more than a year, depending on employees’ tenure with the company.
- Employees have until Aug. 23 to decide whether to seek a buyout or take early retirement.
- Those who accept the buyout will depart at the end of September.
- Layoffs are expected to be complete by Nov. 15.
The restructuring marks a significant shift for Intel as it adapts to the evolving demands of the technology sector.
Meanwhile, a group of Intel shareholders has filed a lawsuit against the chipmaker following a significant decline in the company’s stock price after the announcement of job cuts and a reduction in dividends.
The plaintiffs allege that Intel’s management failed to disclose critical information that would have alerted investors to potential risks, leading to inflated stock prices and significant monetary losses once the market adjusted.
Intel has yet to comment on the ongoing lawsuit.
The bigger picture: Major IT firms, including Intel, Microsoft, and Intuit, have laid off 124,517 employees across the globe till July this year.
- Intel announced it would lay off more than 15,000 jobs as part of a $10 billion cost-reduction strategy.
- Microsoft has also been significantly impacted, with over 1,000 staff losing their jobs in the past two months.
- The layoffs extend to various segments within the tech industry, affecting companies such as UKG, Intuit, Dyson, Kaspersky, Unacademy, WayCool, PocketFM, Bungie, Humble Games, and Dell.
The continuing job cuts have prompted IT workers to rally, with significant protests occurring in Bengaluru against proposals including a 14-hour workday.
Full story
Intel is offering buyouts and early retirement packages to employees as part of its restructuring efforts. The chipmaker announced the terms on Monday, with buyouts ranging from 13 weeks of pay to more than a year, depending on the employee’s tenure with the company. Employees have until Aug.
23 to decide whether to accept the buyout or take early retirement. Those who accept will depart at the end of September. Layoffs are set to begin in October and are expected to be complete by Nov.
15. The restructuring comes as Intel adapts to the changing demands of the technology sector. The buyouts and early retirement packages offer financial support to employees during the transition, with compensation based on their length of service with the company.
Intel encourages employees and interested parties to review company communications and consult with the human resources department for more detailed information and updates. Meanwhile, a group of Intel shareholders has filed a lawsuit against the company following a significant drop in its stock price.
Intel’s restructuring efforts and impact
The decline came after Intel announced job cuts and a reduction in dividends. The plaintiffs allege that Intel’s management failed to disclose critical information that would have alerted investors to potential risks. They claim this lack of transparency led to inflated stock prices and substantial losses once the market adjusted.
Intel has not yet commented on the ongoing lawsuit. The company’s recent decisions, including job and dividend cuts, are part of broader efforts to restructure and remain competitive in an evolving market. The tech industry has been hit hard by layoffs in 2024, with major IT firms like Intel, Microsoft, and Intuit cutting a total of 124,517 jobs globally as of July.
Intel alone announced plans to lay off more than 15,000 employees, representing over 15 percent of its workforce, as part of a $10 billion cost-reduction strategy for 2025. Other companies, such as UKG, Intuit, Dyson, Kaspersky, Unacademy, and WayCool, have also made significant job cuts. The layoffs extend to various segments within the tech industry, including writing, gaming, and diversity and inclusion teams.
The ongoing job cuts have sparked protests among IT workers, with notable demonstrations in Bengaluru against proposals such as a 14-hour workday. As the industry continues to face challenges and adapt to changing market demands, the impact on workers remains a pressing concern.
- OregonLive.”Intel severance: Chipmaker sets terms for buyouts, early retirement and layoffs”.
- Reuters.”Intel shareholders sue chipmaker after job, dividend cuts cause stock plunge”.
- Business-Standard.”Tech layoffs 2024: IT companies lay off 100,000 employees till July 2024″.