Republican Senators Question Intel’s Mass Layoff Plans

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In his letter on Wednesday (28/8) local time, Scott asked CEO Pat Gelsinger to explain the reasons for the cuts considering that the technology company will receive nearly 20 billion US dollars in grants and loans to increase their chip production from the government.

Scott questioned whether the Commerce Department’s planned awards had failed to deter companies from cutting back.

“What is Intel trying to accomplish with these layoffs, and why hasn’t the investment of billions of U.S. taxpayer dollars been enough to prevent these layoffs?” Scott asked, as quoted by ReutersThursday (29/8).

Scott wants Intel to detail how many U.S. employees will lose their jobs and whether the cuts will impact Intel’s planned semiconductor manufacturing investments.

The Commerce Department said in May the funding would support the creation of more than 10,000 manufacturing jobs and nearly 20,000 construction jobs for projects in Arizona, New Mexico, Ohio and Oregon.

Intel said this month it would cut costs by $10 billion by 2025 and reduce its workforce by more than 15 percent, with the majority of the departures completed this year.

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Gelsinger said Intel’s workforce was 10 percent larger than in 2020, its revenue was $24 billion higher than in 2023, and it needed fewer people at headquarters and more in the field to support customers.