Employees and Work at Intel

2024:15% staff cut

At the end of July 2024, it became known that Intel would lay off thousands of employees on a global scale. The restructuring is aimed at reducing costs and restoring the business after falling revenues and losing market share amid a difficult macroeconomic situation.

It is noted that Intel is a major player in the markets of personal computers and servers, but faces certain difficulties in the segment of accelerators for artificial intelligence tasks. This area is dominated by Nvidia with its GPU-based accelerators. In addition, Intel is under pressure from AMD. Against this background, Intel CEO Pat Gelsinger initiated transformations aimed at restoring the company's competitiveness. In particular, significant funds are spent on research and development aimed at improving production capacity, introducing advanced technologies and entering new markets.

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As of mid-2024, Intel employs approximately 110,000 employees worldwide. On August 2, 2024, the Intel press service clarified that the staff reduction will affect 15% of employees. It is expected that the reductions may affect about 15 thousand people. These measures will bring significant financial benefits to the corporation: the projected savings will be up to $10 billion by 2025. Some of these funds can be used to strengthen market positions.

Gelsinger expects that Intel, thanks to large-scale reorganization measures, will be able to improve its position and regain the lost share. The corporation is developing a plan for the construction of factories for the production of semiconductor products under orders from third-party chip developers. In addition, attention will be paid to the development of new products for the field of AI and high-performance computing.^[1]

2023: Reduction of salaries for ordinary employees by 5%, tops - by 15%

In early February 2023, Intel announced a significant reduction in the salaries of employees and managers. The American microprocessor manufacturer is forced to take such measures due to the collapse in computer sales.

Intel spokesman Eddie Burr said the "changes are designed to more significantly impact our leadership team and will help support investment and the overall workforce." Burr also acknowledged that Intel had "stumbled" and lost market share to rivals such as Advanced Micro Devices (AMD).

Intel cut salaries for ordinary employees by 5%, tops - by 15% due to the crisis in the United States

Intel CEO Pat Gelsinger has had his base salary cut by 25% since February 1, 2023. The remuneration of his leadership team will decrease by 15%. Senior managers will receive a reduction of 10%, and the remuneration of middle managers will be cut by 5%. According to Gelsinger, these changes are designed to have a more significant impact on our executives at Intel and will help support the investment and overall workforce needed to accelerate corporate transformation and drive Intel's long-term strategy.

The sharp decline in revenue for Intel management began in 2014 and was associated with a new formula for determining wages, in which the performance of departments and the corporation as a whole plays a large role. As explained in Intel's reporting documents, the base salary for 350 members of the company's management is approximately 10% of the total payments. 24% is accrued as a bonus at the end of the year, and 65% is paid in shares. These values vary depending on Intel's performance.

According to Bloomberg, Intel intends to implement production technologies at an unprecedented pace. The corporation will also build plants in Europe and the United States and try to get orders from other chipmakers as an outsourcing manufacturer. The move through 2025 will put Intel in direct competition with Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics, two Asian companies that beat it in the chipmaker rankings in size and capability in 2022.^[2]

2022

Intel sends thousands of employees on unpaid leave as demand for computers collapses

On December 1, 2022, it became known that Intel offered unpaid leave to its employees in Ireland in order to reduce costs. The financial situation of the corporation is deteriorating due to a sharp drop in demand for personal computers, due to which the supply of processors collapsed.

The Irish company Intel Leixlip in County Kildare employs about 4,500 workers. It is estimated that approximately 2,000 of them will go on three months of unpaid leave. Intel calls this initiative a "voluntary weekend" program, noting that it will provide an opportunity to reduce short-term costs and offer employees attractive vacation options.

Intel sends thousands of employees on unpaid leave

During our recent financial report, we announced significant cost-cutting and efficiency measures. At the same time, we intend to provide the investment necessary to accelerate our transformation and create conditions for long-term growth, "Intel notes.

When asked what would happen if applications for voluntary unpaid leave were made by too few or too many employees, Intel said that staff could, at their sole discretion, submit applications and the corporation would then decide what action to take. Intel expects employees to go on vacation in the first quarter of 2023.

In general, this initiative is due to the fact that many technology companies in the current macroeconomic environment in 2022 announced a wave of job cuts. Chipmakers have suffered from a rapid decline in the computer market, global component shortages and disruption of supply chains. The European headquarters of many of the world's IT giants are in Ireland, where hundreds of jobs are expected to be cut on Twitter, Meta (recognised as an extremist organisation; activities in Russia are prohibited), Stripe and other companies.^[3][4][5]

Cutting 20% of staff as its business collapses

On October 11, 2022, it became known that Intel was preparing a massive staff reduction that could affect thousands of employees. The company is forced to carry out restructuring amid a sharp drop in demand for personal computers.

The fact that Intel is going to fire a large number of people was reported by Bloomberg news agency, citing people familiar with the situation. It is expected that the personnel purge will affect several Intel departments at once, including those engaged in sales and marketing. About 20% of company employees may fall under the reduction. By July 2022, Intel employed 113,700 people worldwide.

Intel cuts 20% of the state

The reduction in the number of personnel may be a result of a deterioration in financial performance. Intel. The corporation's revenue, according to its own forecasts, in 2022 may be $11 billion lower than predicted. One of the reasons for this collapse is the sharp drop in the global personal computer (PC) market. According to Gartner estimates, in the third quarter of 2022, about 68 million desktops and laptops were sold globally. This is almost 20% less than the result of a year ago, when shipments were 84.4 million units. Meanwhile, it is PC processors that are one of the main revenue items for Intel.

Intel's fixed costs are estimated to range from $25 to $30 billion. The upcoming staff reduction is expected to reduce this value by 10-15%. In addition, the corporation will be able to optimize the structure of its key business units.

According to The Wall Street Journal, Intel CEO Pat Gelsinger plans to split the chip development and production business, writes. The new structure, which the head of the company announced in a letter to employees on Tuesday, October 11, is designed to allow a network of plants to operate as a contract chipmaker, receiving orders from both the company itself and other customers on the same terms.^[6]

2021

In the US, Intel sends all unvaccinated employees on unpaid leave

On December 21, 2021, it became known that Intel began notifying employees in the United States about the suspension from work in case of refusal to vaccinate against the coronavirus COVID-19.

Unvaccinated Intel workers will have to go on unpaid leave in April 2022. Under the exception are those who have a medical exemption from vaccination - the document must be provided to the company by January 4, 2022. Those who have a withdrawal will have to take tests coronavirus once a week, regardless of whether they work remotely or in the office. Those who have no recusal will not be fired, but from April they can be sent on unpaid leave for at least three months.

Intel sends all unvaccinated employees on unpaid leave

The deadline for vaccination against COVID-19 for Intel employees is January 4, 2022. The company claims that it will not fire employees who have not been vaccinated.

According to Oregon Live, Intel in its intention to set a deadline for vaccinating its employees refers to a US government decree that obliges federal contractors to vaccinate their employees. This requirement applies to companies with more than 100 employees in the state. By December 21, 2021, it is not clear whether this decree will work - at the beginning of the month it was suspended in the state of Georgia, and last week in Louisiana after a joint lawsuit by companies and several religious groups. They argue that the executive order violates the US Constitution. The government has appealed federal court decisions in those states.

We are closely monitoring the situation in the legal field and believe that resolving the case from Georgia, like other similar cases, will take time. Until then, we will continue to inform our employees about the necessary actions, the Intel press service said.[7]

Vaccine liberalism in the world of big IT-Business: why does Intel not force employees to vaccinate against COVID-19?

Most of the largest American technology companies one way or another force employees to vaccinate. Moreover, some of them began to do this even before the White House in September announced the extensive distribution of the mandatory vaccination plan to new categories of citizens in the United States. For example, employees of the federal government's supplier companies^[8].

As of October 2021, among the companies that have already introduced mandatory vaccination in one form or another, Facebook and Google, which announced it back in July for employees returning to offices. To work in the office, vaccination is also required at Cisco. Microsoft has introduced mandatory vaccinations not only for employees present in its American offices, but for any guests at its Microsoft^[9] for^[10].

IBM went even further and in October announced mandatory vaccinations for employees whether they were working in the office or remotely. Otherwise, they face unpaid suspension from work until they are vaccinated. At the same time, the company said that it would consider the possibility of exceptions to this rule for medical or religious reasons^[11].

Intel recommends its employees to be vaccinated against COVID-19, does not set any conditions related to vaccinations

One of the big IT companies standing apart in the vaccination pantheon is Intel. Its regularly updated coronavirus policy contains a clause that the company does not require vaccination against COVID-19 from its staff.

Moreover, for privacy reasons, company managers should not collect employee medical data and share it with anyone, including information on vaccination status, according to the document^[12] Policy^[13].

At the same time, Intel personnel present at the sites must comply with standard anti-shock measures such as social distance and wearing masks. The coronavirus policy document emphasizes that employees must also meet the requirements of local laws regarding vaccination and measures to reduce the spread of infection.

While Intel does not require employees to be vaccinated against COVID-2019, we strongly encourage our colleagues around the world to be vaccinated with vaccines approved by the relevant national health authorities as such vaccines become available. In order for employees to comfortably undergo the vaccination process, we offer them up to 4 hours of paid free time, - told TAdviser in the Russian office of Intel.

To encourage vaccination, in August 2021, Intel proposed paying $250 for employees working in the state for vaccination, and another additional payment of $100 for^[14] to^[15].

Pat Gelsinger At the same time, the CEO of Intel (Pat Gelsinger) noted that vaccination is a critical element in order to stop the pandemic: "the risk of infection is reduced by about a third for vaccinated people, and the risk of severe illness or death is ten times or more"^[16]

What is the reason for the more liberal approach to vaccinating employees at Intel compared to most of the large American IT-Business, the company did not explain TAdviser. However, one of the users in the Twitter comments suggests that this may be due to the biography of Pat Gelsinger: he grew up in a province in Pennsylvania inhabited by religious Amish and Mennonites, and is religious himself.

Even when he was CEO of VMware, Pat Gelsinger said that it was God who brought him to business and metaphorically called himself the "senior pastor of the VMware church^[17] Among religious people, there is often a special attitude towards vaccinations, so, indeed, it is possible that Intel's policy regarding vaccination of employees is somehow related to the religious beliefs of the company's CEO.

Payment of funds to employees vaccinated against COVID-19

In mid-August 2021, Intel announced the payment of bonuses of up to $350 to employees vaccinated against COVID-19. The proposal will be valid until the end of the year, the chip manufacturer refrains from introducing mandatory vaccination.

In a memo to employees, Intel CEO Pat Gelsinger urged employees to get vaccinated against COVID-19, the cash bonus will be paid to those who have already been vaccinated as thanks, as well as those who are going to be vaccinated, as an incentive. By August 2021, Intel has approximately 111,000 employees worldwide.

Intel pays employees up to $350 for COVID-19 vaccination

I deal with data, and the data shows that vaccination is an important element in ending the pandemic. The risk of infection of vaccinated individuals is reduced by about three times, and the risk of severe illness or death is reduced by ten or more times, Gelsinger noted.

According to the general director of the company, all employees who have been vaccinated will receive a cash bonus of $250, the amount may vary depending on their geographical location. He added that hourly employees who have been vaccinated will receive $100 food vouchers in addition to a $250 cash reward. The duration of such a proposal for employees will be extended "in countries where the vaccine is not available until the end of the year."

Gelsinger drew attention to the fact that vaccinated employees will also be able to resume "business travel and participation in external events and conferences on behalf of Intel," starting October 1, 2021.

Intel, according to the CEO, "seeks to simplify vaccination," which involves working with governments and health organizations to make vaccines available to company employees, as well as their family members and Intel contract workers.^[18]

Appointing Pat Gelsinger to Head Intel

On January 13, 2021, Intel announced the appointment of Pat Gelsinger as the company's new CEO. In this post, he will replace Robert Swan, who was at the helm of the American processor manufacturer for about two years. Read more here.

2019

Ban on communication with Huawei employees

On June 10, 2019, it became known that several large technology companies banned their employees from all communication with Huawei Technologies employees due to sanctions imposed by the American government on the Chinese manufacturer of telecommunications equipment and mobile devices.

According to the Reuters news agency, citing people familiar with the situation, all informal contacts with people working in Huawei were limited to Intel and Qualcomm, as well as the research company InterDigital Wireless and the South Korean mobile operator LG Uplus. Read more here.

Robert Swan is the new CEO of Intel

On January 31, 2019, Intel announced the appointment of 58-year-old Robert Swan as the new CEO of the company, who has been interim since June, when Brian Krzanich was dismissed. Read more here.

2018

11 Intel employees hospitalized after acute chemical poisoning

At the end of November 2018, 11 workers at the Intel manufacturing complex in Hillsboro, Oregon, were hospitalized after they developed breathing problems while working. Fortunately, there were no casualties.

As the representative of the Hillsborough Fire and Rescue Service Bruce Montgomery told The Oregonian/OregonLive, it is not clear what caused the malaise of people. At the same time, he noted that the rescue team was notified of "acute chemical poisoning" and provided assistance to the injured workers of the Intel Ronler Acres campus. All 11 people were conscious when they were taken to the hospital.

Intel Ronler Acres Campus

According to Bruce Montgomery, firefighters and gas analyzers at Intel did not detect the spread of any dangerous gases at the Intel facility. Due to the lack of toxic substances in the air, a team of chemical incident specialists was not sent to the Intel campus.^[19]

Montgomery said he doesn't know which department the affected employees work in. The company itself refrained from commenting. An investigation is underway.

Earlier, an explosion occurred at the Intel factory in Arizona, where processors are produced. Chemical solutions caught fire and exploded at a chip manufacturing facility in Arizona. Hundreds of workers were urgently evacuated.

Four people suffered serious burns as a result of the explosion and were hospitalized in local hospitals. Three workers were later discharged, another one was in critical condition for some time. According to law enforcement officers, the injuries were mainly fragmentation. Some workers were diagnosed with concussion.

Then it was assumed that the emergency occurred through the fault of one of the employees of the enterprise. However, the final cause of the incident was never named.

Dismissal of the CEO due to a love relationship with an employee

On June 21, 2018, the American microprocessor manufacturer Intel announced the dismissal of its general director Brian Krzanich. The reason for the resignation is an office romance. Read more here.

2017

Intel bosses threatened as women and black people rise in state

In April 2017, it became known that Intel is increasing the cost of ensuring the safety of executives due to threats received by them in connection with the increase in minorities in the company's staff.

In 2016, Intel spent $1.86 million on the personal security of CEO Brian Krzanich. Another $275.2 thousand was spent on protecting his house. For comparison, in 2015, the safety of the head cost the company only $39.6 thousand.

Brian Krzanich

Intel Executive Vice President Venkata Renduchintala, who heads the division that combines client devices, the Internet of Things and system solutions, received $944.8 thousand from the employer for security. Similar annual expenses for Stacy Smith, who at Intel leads production, sales and operations, amounted to $309.9 thousand.

According to materials provided by Intel to the US Securities and Exchange Commission, the company is increasing security costs due to the fact that the CEO and several other executives, as well as their family members, receive threats. The IT giant did not provide more detailed information on this matter.

Bloomberg reports that this is about threats from an increase in the number of women, blacks, Latinos and other minorities in Intel staff. In April 2016, Brian Krzanich said that some top managers faced a backlash related to the company's position and work towards minorities. In 2015, Intel was going to spend about $300 million to ensure that by 2020 the company's staff reflected the national and gender composition of the US population.

At the end of 2016, Intel increased the share of women in the state to 25.8%, which is 2.3 percentage points more than in 2014. In addition, the company equalized the salaries of minorities and the majority in comparable positions.

2016

Reduction of 11% of the state

On April 19, 2016, Intel announced an 11% reduction in headcount, explaining this decision by a restructuring launched amid falling global demand for personal computers.

Intel is going to lay off about 12 thousand employees. By the end of 2015, the global staff of the corporation totaled 107.3 thousand people.

Due to massive job cuts, Intel expects to save $750 million in 2016, as well as reduce annual costs by $1.4 billion by mid-2017. However, first, the chipmaker will have to spend about $1.2 billion to pay compensation to dismissed employees and other expenses related to the announced personnel purge.

Intel Fires One in 10 Employees

Intel notes that most of the workers who fall under the reduction will be notified of this until June 2016, but in some cases the dismissal process will drag on until mid-2017.

These actions will drive long-term change to strengthen Intel's position as a leader in the world of smart networking, says Brian Krzanich, CEO of the company. - We are confident that we will be able to develop as a more productive company with a wider coverage and strong management.

Intel also said that the company intends to accelerate its "evolution from a PC company to an organization that develops cloud technologies and also serves billions of smart devices."

Along with an 11 percent staff cut, Intel announced the departure of Stacy Smith as CFO. He will be transferred to the position of head of sales, production and development. The appointment will take effect only after the company finds a new financial director, which may take several months.^[20]

2015: Top Management Team Update

On July 2, 2015, Intel announced changes to its organizational structure. Chief among them was the resignation of the company's president, Renee James.

She will resign in January 2016. Until that time, James will help with the transfer of his duties to a new leader, whose name has not been announced.

Intel President Rene James will leave the company in January 2016

"Over the past 28 years, Rene has had a huge impact on Intel's development," comments Brian Krzanich, CEO of the company. - On behalf of the board and management, we thank Renee for her work towards the business we have now. We fully support her decision.'

Renee James called her departure another stage of her career, the new place of her work is not called. Intel's technology, manufacturing, and human resources departments, which are directly subordinate to James, were temporarily taken over by Krzanich.

In addition to the departure of the president of Intel, the company announced some other personnel changes. For example, Intel General Manager for Communications and Devices Aicha Evans has been appointed responsible for strategy in the mobile business, and Arvind Sodhani, head of Intel Capital, will leave the corporation in January 2016, transferring his duties to the head of M&A transactions, Wendell Brooks, who will combine both positions.

In addition, it became known about the completion of the integration of the information security division Intel Security (created on the basis of the acquired company McAfee) with the general structure of the American corporation. Intel Security was led by Chris Young. New Technology Group unit leader Josh Walden now leads all research teams.

"We have rebuilt the leadership structure to further improve performance in order to achieve the benefits of our strategy faster than before," Brian Krzanich said.^[21]

Notes