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Thousands of jobs cut as chipmaker begins restructuring - oregonlive.com
Intel began laying off employees across the company Monday, notifying workers individually about whether they will keep their jobs.
New CEO Lip-Bu Tan told workers in April to expect major layoffs in the coming months as the chipmaker slashes costs and overhauls its organization after years of technical setbacks and falling sales.
“As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company,” Intel said in a written statement Monday, reiterating prior comments. “We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work.”
Due to the urgency around the balance sheet. These changes are coming faster and are more drastic than I expected. These are good moves by the new CEO. Hopefully Intel didnt wait too long to change course.
Sources tell "Globes" that many dozens of employees have been summoned to hearings in a wave of layoffs that will see the production plant in Kiryat Gat hit hard.
Intel today began implementing its latest wave of layoffs in Israel. Sources close to the matter have told "Globes" that many dozens of employees in Israel were today summoned to hearings and this will grow to hundreds of Intel Israel's 9,300 employees.
The hearings will take place next week and it will then become clear how many Intel Israel employees will ultimately be fired, how many will receive early retirement offers, and how many will keep their jobs or move to another position. Estimates are that Intel will lay off between 15% and 20% of its manufacturing division employees worldwide and many thousands more R&D employees at middle management levels, as part of new CEO Lip-Bu Tan's streamlining plan to make Intel a leaner and more efficient company, which can compete with its rivals.
After the layoffs, Intel Israel is expected to have less than 9,000 employees and perhaps even stabilize at 8,500 people - a similar number to its 2012 headcount, with less than 4,000 employees at its manufacturing plant in Kiryat Gat.
"The first group includes middle-level managers. These cuts stem from Intel’s decision to flatten the organization and reduce management layers to enable closer contact between employees and managers and speed up decision-making."
"ROC workers and other employees at the plant told Calcalist that the cutbacks in the ROC stem from Intel’s global plan to implement new automation systems."
"The first group includes middle-level managers. These cuts stem from Intel’s decision to flatten the organization and reduce management layers to enable closer contact between employees and managers and speed up decision-making."
"ROC workers and other employees at the plant told Calcalist that the cutbacks in the ROC stem from Intel’s global plan to implement new automation systems."
The second group affected consists of technicians working in what is known as the ROC (Remote Operations Center), according to employees at the ROC who spoke to Calcalist. These operations staff remotely control, monitor, and manage production processes. ROC technicians do not physically work on the production line, they don’t wear cleanroom suits but instead work around the clock from a control room, operating computer systems connected to all the tools and stations in the fab. Using these tools, they run machines, approve processes, track statistics, and detect faults in real time. This role requires managing the complexity of hundreds of production processes simultaneously, minimizing downtime, and responding rapidly to problems. The work is done in shifts, 24/7.
ROC workers and other employees at the plant told Calcalist that the cutbacks in the ROC stem from Intel’s global plan to implement new automation systems. According to them, these systems, rolled out gradually, will automate tasks currently performed manually by ROC technicians and managers. As automation is introduced, the need for human labor in this department will shrink, ultimately rendering most roles redundant. Workers said they were told this reflects a broader business logic that will be implemented at other Intel chip plants worldwide, not just in Israel. This process will not happen overnight: according to estimates, the transition will continue through the end of 2025, with layoffs happening in parallel with technological progress.
This sounds like how (at least the most advanced) fabs are being run today? This seems to be a key AI casualty.
www.oregonlive.com
