Intel laid off hundreds of people at a number of the company’s sites, including Costa Rica and Oregon, according to local Oregon press.
Internal sources at Intel told The Oregonian that the company had laid off hundreds of IT workers. Sources also claimed that the layoffs didn’t appear to be strictly a cost-cutting move, but were instead part of a change in the way Intel approaches its internal systems.
Intel confirmed the layoffs to SDxCentral, but it would not specify the number of cuts or the rationale for the cuts.
“Changes in our workforce are driven by the needs and priorities of our business, which we continually evaluate. We are committed to treating all impacted employees with professionalism and respect,” said the company’s spokesperson.
According to The Oregonian’s report and an obtained internal memo, Intel, which previously used multiple IT contractors, was consolidating its operations under a single contractor — Infosys. Verizon last year signed a $700 million IT outsourcing agreement with the India-based technology firm.
The Intel cuts will reportedly include layoffs in Costa Rica, where it operates a research center, laboratory, and a global service center. This comes two weeks after Costa Rican president Carlos Alvarado met with Intel execs in San Jose, California, during a trip to the U.S. to seek out foreign investment.
Last March, Intel downsized in Costa Rica and cut somewhere around 200 jobs, according to local reports.
The chipmaker is also preparing to build new manufacturing factories in Oregon, Ireland, and Israel. This includes a multi-million dollar factory in Hillsboro, Oregon, which will reportedly add around 1,750 jobs to the company’s Oregon workforce.
The latest cuts come two months after Intel appointed Bob Swan as its permanent CEO. Swan had served as the interim chief for seven months prior to his permanent appointment.
Intel Capital Invests $117M
Also this week, Intel’s investment arm Intel Capital announced that it would invest $117 million in 14 startups. The startups span communications, health care, manufacturing, and artificial intelligence (AI).
The 14 companies are from around the world, including China, Canada, Israel, the U.K., and the U.S.
The investment arm routinely invests between $300 million and $500 million in startups that it deems disruptive, unique, and forward-thinking.
Among those selected in this batch is Landing AI, which applies AI to manufacturing and was started by former Google Brain co-founder Andrew Ng; Unether AI, which is a Canada-based startup developing high-performance AI chips; and China-based Zhuhai EEasy Technology, which is a system-on-a-chip (SoC) design house.
The remaining companies are: CloudPick Limited, SambaNova Systems, Mighty Networks, Pixeom, Polystream, Tibit Communications, Medical Informatics, Reveal Biosciences, OnScale, proteanTecs, and Qolibri.