Intel is all set to fire 300 employees in Folsom and Santa Clara.
Intel Corporation has confirmed that it wishes to minimize its workforce the previous week. The reason why the company has come up with this decision is that a downtrend has been in the PC market followed by a weaker revenue stream. According to the recent update, the company has decided to lay off more than 152 employees working at its Folsom Campus by 15th July, FY15. Along with that 165 employees will leave the company’s Santa Clara headquarters as well.
In accordance with the recent news, the company has already provided a letter on June 11 to the State Employment Development Department where it has acknowledged the authorities that it will reduce the head count. The reason why they have already acknowledged is that the Worker Adjustment and Retraining Act (WARN) had instructed big organizations that they are required to issue a warning before they actually implement the round of layoff.
The news about the massive layoffs which Intel Corporation is about to undergo has been successful in gaining immense traction in the past couple of weeks. The company has decided that it will cut down on the number of employees from 18,600 in the Washington County to a number that remains undisclosed. The company also revealed a memo according to wish they stated that “Yes, we are implementing headcount reductions.”
The chief executive officer of Intel, Mr. Brian Krzanich circulated an email at Intel explained that this plan will first hit Arizona and Oregon. The reason why Intel is undergoing a layoff is that it can accommodate all the expenditures to a minimum amount as it faces difficulty in keeping pace with the personal computer market. Moreover, the authorities have also decided that they will reduce almost $300 million the company earlier spent for research and administration purposes.
Intel Corp. round of layoffs is primarily due to the “underwhelming” demand of personal computers. This has caused them to face a major setback resulting in a massive layoff. The company faced a loss of $4 billion the previous year in its mobile unit.
Hence in a nutshell, Intel is undergoing massive structural changes that will affect them in the long run. Mr. Brian Krzanich has taken a good step to opt for a layoff that will help them to attain stability. However, it is extremely early to predict the future of these layoffs and its impacts will be visible in the times to come. Meanwhile, we can just wait and see what happens next.
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