Intel recently announced plans to reduce its workforce by nearly 20,000 employees as part of a cost-cutting strategy. The company currently employs around 125,000 people, so the layoffs will impact about 15% of its staff. Intel aims to save over $10 billion by 2025 through these cuts and other measures like operational changes and reduced capital spending.
Compared to other tech giants, Intel’s salaries are relatively low. In 2022, the highest salary offered by Intel was about $263,000 for an engineering manager role. In contrast, Nvidia’s salaries ranged from $74,460 to $786,000, while Microsoft and Alphabet offered salaries between $77,000 and $310,000 and $55,000 and $340,000, respectively.
Intel’s annual salaries for various positions include:
– Business Intelligence Analysts: $65,437 to $142,438
– Information Security Analysts: $107,994 to $170,248
– Supply Chain Planning Analysts: $85,467 to $96,034
– Product Marketing Engineers: $102,606 to $150,093
– Mechanical Engineers: $81,765 to $121,576
– Engineering Managers: $117,624 to $263,952
– Application Developers: $92,488 to $121,763
– Program Managers: $67,621 to $168,834
– Data Scientists: $65,229 to $152,681
These salary differences between Intel and its competitors could be a factor in the company’s decision to reduce its workforce. As Intel navigates these changes, it will need to balance cost savings with the ability to attract and keep top talent in a competitive industry. The job cuts and dividend reductions have led to a lawsuit from Intel shareholders.
Intel workforce reductions and cost savings
They claim these decisions, which caused a significant drop in Intel’s stock price, were not properly communicated. Intel faces increased competition from AMD and NVIDIA, putting pressure on the company to improve its financial performance.
As part of the cutbacks, Intel is offering a voluntary retirement program in Israel. Employees with five years of service will receive four months’ salary, those with over 10 years will get 10 months’ salary, and those with more than 30 years will be entitled to 19 months’ salary. Intel Israel expects to lose between several hundred and 1,500 employees out of its 11,700-strong workforce.
Intel’s global layoffs will affect about 17,500 employees, or 15% of its total workforce. The company plans to optimize operations and reduce expenses in areas like R&D, marketing, management, and mergers and acquisitions. Projects that do not align with Intel’s near-term future or lack significant business potential are likely to be shut down.
The voluntary retirement process in Israel will occur in two waves, targeting long-term veteran employees first and then extending to all employees, except those at the vice president level and above. Intel aims to complete these measures by November, minimizing the need for forced layoffs.
