NEW A vastly improved search engine helps you find the latest on companies, business leaders, and news more easily.<doc-sep>The Oregonian says Intel has laid off a ‘substantial number’ which, according to some company sources, translates into hundreds. Oregon is one affected site. Another is said to be Costa Rica, an admin facility. Reports say it’s more about re-focusing than cost-cutting as Intel re-thinks its internal systems. The company has no shortage of cash – it it had $29.4 billion in cash flow last year and has budgeted $15.5 billion for capex this year including fab additions in Oregon, Israel and Ireland. Last year it had a stellar year growing revenues 13% to $70.8 billion with $18.7 billion sales coming in Q4. This year it expects $16 billion revenues in Q1 and full year revenues of $71.5 billion.<doc-sep>Intel laid off a substantial number of information technology workers at sites across the company this week, according to multiple sources inside the company. The layoffs numbered in the hundreds, according to people with direct knowledge of the cuts who asked not to be identified because they were not authorized to speak about their employer. Intel confirmed the layoffs but declined to specify how many people lost their jobs or describe the rationale for the cutbacks. “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,” Intel said in a brief statement acknowledging the cuts to The Oregonian/OregonLive. The cuts took place at sites across the company, including Oregon, Intel’s largest site with 20,000 workers. A person with direct knowledge of the cuts said the Oregon layoffs were in proportion to those elsewhere. Cuts also took place at other Intel facilities in the United States and at a large administrative facility in Costa Rica, according to people familiar with the layoffs. Though Intel forecasts flat sales in 2019, people inside the company said this week’s layoffs don’t appear to be strictly a cost-cutting move. Rather, they said the cuts appeared to reflect a broad change in the way Intel is approaching its internal technical systems. Intel has previously used several information technology contractors. An internal memo obtained by The Oregonian/OregonLive said Intel will now consolidate operations under a single contractor, the Indian technology giant Infosys. With fewer contractors Intel needs fewer managers overseeing those people, according to one person privy to Intel’s rationale for the change. Information technology (IT) professionals don’t usually develop new technology but they play an essential role in managing a company’s internal systems. Their work is particularly important at tech companies such as Intel, which depend on IT workers to keep systems secure and running smoothly. This week’s layoffs are among Intel’s biggest cutbacks since 2016, when the company eliminated 15,000 jobs across the company through layoffs, buyouts and early retirement offers. Intel had 107,400 employees around the world at the end of 2018. At that time Intel was bracing itself for long-term decline in its core business, microprocessors for PCs and laptops. The company has since transitioned to rely on new markets, most prominently data centers. Intel is also preparing for a big shift in its manufacturing technology and is preparing to build new, multibillion-dollar factories in Oregon, Ireland and Israel. Intel is planning for 1,750 new Oregon jobs in the next few years as it builds the third phase of its massive Hillsboro research factory called D1X. Intel shares were trading up 1.1 percent Friday at $53.70, in line with broader market gains. The stock is near its highest point since the dot-com era. This article has been updated with additional information about the cutbacks, and with Intel’s closing stock price. -- Mike Rogoway | twitter: @rogoway | 503-294-7699<doc-sep>
Intel layoffs impact hundreds of employees. Intel will also leverage Indian giant Infosys while consolidating information technology (IT) outsourcing contracts, a report says. Intel layoffs have impacted hundreds of technology workers, and the chip giant will also consolidate its information technology (IT) outsourcing relationships to lean more heavily on Infosys of India, according to The Oregonian. Intel previously leveraged several IT contractors, the report said. But a company memo described plans to consolidate those outsourced operations — leveraging Infosys as a single contractor, the report said. Intel confirmed some job cuts to The Oregonian, but did not disclose specific staffing figures or departments impacted. Intel: New CEO, Shifting Market The job cuts come roughly two months after interim CEO Robert (Bob) Swan shifted to the permanent CEO role. Swan himself in August 2017 hinted that the chip maker would need to eventually make job cuts to remain competitive. Intel offer somewhat weaker-than-expected fiscal 2019 revenue guidance back in January 2019, triggering concerns about the company’s data center revenues. Still, Q4 revenue for fiscal 2018 was $18.7 billion, up 9 percent year-over-year (YoY); and full-year 2018 revenue set an all-time record of $70.8 billion, up 13 percent YoY, the company said at the time. Numerous technology giants have had targeted layoffs amid continued shifts to cloud computing and subscription services. IBM, Oracle and SAP all have had cuts in recent months, according to reports. But in some cases, overall company head counts continue to grow as employers shift their payrolls toward cloud, security, big data, analytics and mobile opportunities.