So what is happening?
Chipmaker Intel is planning more jobs cuts – this time more than 20 per cent of its staff globally – as it attempts to reduce bureaucracy. The company is apparently trying to get back to its roots, rebuilding an engineering-driven culture and shedding some of the layers of management that have built up over the years.
Haven’t we been here before?
Yes. Intel has had a number of job cuts over the past few years, including last year’s round of lay-offs that saw about 15,000 jobs cut from the company. It now employs more than 108,000 people worldwide, with almost 5,000 in Ireland.
[ Weeks before extent of Intel’s job cuts known, Minister for Enterprise saysOpens in new window ]
I thought Intel was a big player?
It was, and it still sells billions of dollars worth of chips every year. But the company has fallen behind on some of the newer industries – most notably, missing out on the mobile revolution, which was dominated by ARM, and artificial intelligence, which saw Nvidia take the lead. That has put Intel in a weaker position than it was used to at the height of the computer boom.
In the laptop market, rival AMD has also made some gains, while Apple has shifted its Mac line from Intel chips to its own design.
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I thought there was a plan?
There was. Under former chief executive Pat Gelsinger, the great turnaround hope for the company was a planned shift to a foundry model, where Intel makes chips for other companies alongside its own. That would put it in competition with companies such as TSMC.
You say former chief executive ..?
Yes, Intel has had a fairly recent shuffle at the top, with Gelsinger exiting the business last year and Lip-Bu Tan installed in his place in March. The new chief executive has paused big spending plans, including a big chip factory in Ohio, and said he will spin off any business that is not core to the company. He was also reported to be focused on making significant changes to Intel’s chip manufacturing methods and the company’s approach to AI in a bid to transform Intel’s fortunes.
And now we have these job cuts.
[ Intel’s choice of new chief executive gives investors cause for cheerOpens in new window ]
How will this affect Ireland?
As of yet, we don’t know. Any cuts to Intel in Ireland will be subject to consultation with staff, and could take place over months rather than weeks. There are hopes that given the intended target – a bloated middle management layer – Ireland will escape the worst of it.
But it also means more uncertainty for the Leixlip workforce, who have had more than their fair share of it in recent years.
