Intel to Lay Off 15,000 Employees, 15% of its Workforce

Intel memo to staff: https://newsroom.intel.com/news/intel-accelerates-transformation-fuel-long-term-growth/

We are accelerating change to provide value for our customers, employees, shareholders and partners... our Q3 results were below the standards we have set for the company and our shareholders — and the response is urgent.

In a Thursday memo, Intel announced plans to lay off 15,000 employees worldwide, accounting for >15% of its workforce. The tech industry is seeing a trend of slowing hiring and increasing layoffs as it enters the mid-2020s. While the recent slump in earnings may be a factor, the scramble to capitalize on AI could also be a cause, as it has yet to prove profitable.

Intel and Austin

Intel, often linked to Austin-native Dell, has a significant presence in Texas with 2,100 employees. The company has 38 ERGs across the state, with major offices in Austin. Though Intel hasn't specified which locations will be affected, their memo expressed disappointment in the ROI on trends like AI.

Tech Layoffs in Austin

Intel's cuts are the latest in a string of tech industry downsizings in Austin. In 2024:

• Google - potential impact on Austin: https://tinyurl.com/2p96umdy
• Unity cut 100 jobs: https://tinyurl.com/2bw3xfuh
• VMWare cut 577 jobs: https://tinyurl.com/2p96umdy
• Expedia - dozens impacted: https://tinyurl.com/2pjawfh6

Also, in 2024:

• Accenture laid off hundreds: https://tinyurl.com/2p96umdy
• Hyliion cut 150 people: https://www.foxbusiness.com/technology/texas-electric-truck-startup-cuts-jobs-amid-spending-crunch
• Rooster Teeth closed after 21 years, 150+ lost jobs: https://www.hollywoodreporter.com/news/rooster-teeth-layoffs-warners-discovery-shuttering-austin-studio-12351258992356494/

Dell and Tesla, two of Austin's biggest companies, implemented mass layoffs earlier this year.

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For more business news, visit our section on austinamericanstatesman.com. To connect with Beck Andrew Salgado, email Bsalgado@gannett.com.