Intel faces scrutiny in US over planned job reductions

Senator Rick Scott has questioned Intel’s decision to cut over 15,000 jobs despite the company being set to receive nearly $20 billion in US grants and loans. His concerns centre on whether the Commerce Department’s metrics are robust enough to ensure taxpayer funds support US manufacturing and job creation.

In May, the Commerce Department announced a preliminary agreement for Intel to receive $8.5 billion in grants, up to $11 billion in loans, and access to a 25% investment tax credit. These funds are intended to create over 10,000 manufacturing jobs and nearly 20,000 construction jobs across several states, although the deal still needs to be finalised.

Despite these investments, Intel has announced plans to cut costs by $10 billion by 2025, reducing its workforce by more than 15%, mainly by the end of this year. CEO Pat Gelsinger noted that Intel’s workforce has grown by 10% since 2020 but with significantly lower revenue in 2023, causing a lower need for staff.

Scott is now seeking details on how many US employees will be affected and how these cuts might impact Intel’s semiconductor manufacturing investments in the country.