Intel Layoffs 2019: Technology Staff Cuts Amid Infosys Outsourcing Bet
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.