Intel's megaplan breaks down. Aggressive decisions seen as the answer to the company's problems

Intel's situation seems pretty dire. In June, we learned that the company's automotive sector is on the chopping block. However, now more information about layoffs is coming to light. They indicate that employees of one of the company's more important factories may lose their jobs. This is another attempt to find savings, undertaken by the current CEO of Intel, Lip-Bu Tan (see Wccftech).

Intel is downsizing in its flagship factory

The Intel factory in Oregon is an investment worth almost 65 billion dollars. Around 23,000 employees works there. However, this state of affairs will not last long, as according to reports, the company is planning mass layoffs, which may affect thousands of people. This is part of the plan under which Intel will say goodbye to about 20% of its factory workers.

Layoffs are set to begin in the middle of this week. This is a problem for many residents of the state, because Intel is supposed to be the largest private employer in Oregon. However, the company needs funds to re-establish its position in the industry. The corporation is left behind with the progressing boom in artificial intelligence-related technologies.

Intel's statement, published by KGW News, suggests that the company wants to reduce its size as a first step. Only then will it be possible to deliver new technologies.

It's unknown when Intel will be ready to get back on track. Even in the company's local, American market, competition is increasing. Recently, TSMC opened a factory, which could significantly reduce Intel's revenues.

• Intel
• tech