Intel has stated a significant workforce reduction, aiming to cut about 15% of its global employees, equating to 15,000 to 17,000 workers. Last week in Israel layoffs began, resulting several employees, with Irish staff now waiting for news about similar cuts in their country.
Reports from The Irish Times show that Intel plans to remove around 16,500 positions worldwide, including approximately 4,900 jobs in Ireland. This numbers have not yet been officially confirmed by the company. This action is part of Intel’s largest restructuring effort to date, which has produced reasonable anxiety among employees.
Intel CEO Pat Gelsinger has publicly expressed his pain over the situation, disclosing that he has struggled with the decision, waking up at 2 AM uncertain about the company’s direction. In a message to the company’s 110,000 employees, Gelsinger admitted the challenging road ahead and highlighted the significant impact on employees and their families.
The statement guide to a severe decline in Intel’s stock, marking the worst drop in over 40 years. Shares dropped by 26.5%, resulting in a $32 billion loss in market value. The company also suspended dividend payments in response to the financial tension.
Intel is reportedly offering severance packages of up to €500,000 as part of its cost-cutting measures in Ireland. Also, Intel has been supporting its Israeli staff to think about early retirement plans willingly. However, compulsory redundancies may also be on the horizon.
With continuing market disputes and a focus on reducing expenses, the final number of influenced employees is anticipated to be confirmed soon.
