Intel Layoffs 2016: Timing, Severance Packages Revealed
Intel Corp.’s plan to cut 12,000 jobs (11 percent of its workforce) appears to be rolling out rapidly. The bulk of the cuts will occur in four areas — site closures, buyouts, layoffs and project cancellations — according to The Oregonian, which apparently has viewed Intel’s internal documentation to employees. Overall, it sounds like Intel will be busy with buyout offers and layoffs throughout the week of April 25 to April 29, 2016.
Updated May 10, 2016: Intel offers new warning to employees mulling buyout offer.
The Oregonian offered this timeline for cuts in each area:
- Site closures: Intel planned to begin site closures on Wednesday and will complete the notification process by April 25. Chief executive Brian Krzanich told workers Tuesday that it’s not closing any manufacturing sites.
- Buyouts: Employees will learn by April 25 if they are eligible for a buyout – either through “Enhanced Retirement” for some long-serving employees or through a “Voluntary Separation Program” for others.
- Layoffs: Intel will begin laying off workers on April 25 and will complete notification by April 29.
- Project cancellations: Intel will notify workers within 60 days if their project is being cancelled or if other structural changes will affect their work.
The various layoff and job cut packages include a range of compensation plans. But the big concern among some employees remains stock grants. “As with job cuts last year, some employees will be targeted for layoff based on their level of performance-based stock grants,” the newspaper reported.
Although Intel remains overwhelmingly profitable, the company’s PC market forecast is even weaker than most pundits originally expected. Also, Intel largely missed the mobile revolution. The company’s decision not to support the original iPhone continues to haunt the company.
Many hardware and software giants from the 1990s are in transition mode as cloud computing and the Internet of Things continue to gain momentum. IBM earlier this week delivered a weaker-than-expected forecast, and Microsoft yesterday delivered weaker-than-expected quarterly results amid PC market weakness.