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\n Semiconductor giant Intel has officially begun a new round of layoffs, following through on CEO Lip-Bu Tan’s warning two months ago that job cuts were “inevitable” as part of a wider restructuring strategy.<\/strong>\n <\/p>\n
The company confirmed in a regulatory filing that the layoffs are scheduled to begin 15 July and will impact a significant portion of its global manufacturing workforce.<\/p>\n
Intel plans to cut between 15% and 20% of its chip manufacturing division, a move expected to affect over 10,000 employees globally, spanning 15 chip fabrication plants across 10 countries.<\/p>\n
The reductions are aimed at streamlining operations, removing organisational complexity and positioning Intel to regain competitiveness in the increasingly turbulent semiconductor market.<\/p>\n
According to a Worker Adjustment and Retraining Notification (WARN) Act notice filed in California last week, 107 employees tied to Intel’s Santa Clara headquarters will lose their jobs.<\/p>\n
Affected positions span a wide range of technical and managerial roles, including: 22 physical design engineers; six cloud software architects; six cloud software engineering managers; an AI systems and solutions engineering manager; a vice president of IT for a business unit; and project and product managers across software, engineering and strategic planning.<\/p>\n
Additional roles hit include engineering managers in silicon design, system-on-chip logic and design-for-test operations.<\/p>\n
“We are taking steps to become a leaner, faster and more efficient company,” an Intel spokesperson said in a statement to Computing\u2019s sister title CRN<\/a>.<\/p>\n “Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”<\/p>\n Tan, who took the helm at Intel with a mandate to overhaul its operations, said in a public memo in April that the company aimed to reduce operational costs by $500 million this year and $1 billion next year.<\/p>\n “There is no way around the fact that these critical changes will reduce the size of our workforce,” Tan wrote<\/a>.<\/p>\n He also criticised the company’s bloated management structure, stating that in recent years, some leaders had begun to measure success by the size of their teams.<\/p>\n Employees affected by the layoffs in the California have either received a 60-day notice or a four-week notice with nine weeks of pay and benefits in lieu of further notice, in accordance with legal requirements.<\/p>\n On Monday we reported that Intel is outsourcing its global marketing operation<\/a> to Accenture and will use more generative AI in support.<\/p>\n Microsoft readies another wave of Xbox cuts<\/strong><\/p>\n Meanwhile, Microsoft is preparing to enact another round of major job cuts, including within its Xbox gaming division, according to The Verge<\/a>.<\/p>\n The layoffs, expected as early as next week, will reportedly impact thousands of employees across Microsoft’s broader operations, including sales and marketing teams.<\/p>\n The move comes as Microsoft begins a new fiscal year and seeks to restructure its gaming unit ahead of the next generation of consoles.<\/p>\n According to the report, Xbox operations in certain Central European markets will be wound down as part of the shake-up. One source told The Verge that the distribution model for Xbox in Europe is undergoing a fundamental realignment.<\/p>\n These cuts follow a series of deep job cuts across Microsoft’s gaming and mixed reality divisions over the past 18 months.<\/p>\n In January last year, 1,900 employees were laid off across Xbox and Activision Blizzard. Then in September, 650 more employees were laid off from Xbox division.<\/p>\n In May this year, Microsoft announced<\/a> that would let go 6,000 employees in a broader workforce reduction.<\/p>\n