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It seems another round of layoffs have hit at Intel, The Oregonian reports. In a statement, Intel confirmed the layoffs but offered no comment on the rationale for the workforce reduction or exactly how many employees would get a pink slip. "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."
According to sources, the layoffs are said to be in the hundreds, mostly affecting IT administrators. The reason is due to Intel attempting to streamline the way it works internally, aiming to "consolidate operations under a single contractor, the Indian technology giant Infosys." So, the layoffs don't appear to simply be a cost cutting measure or a byproduct of Intel's recent struggles.
The job cuts appear to be across the board with layoffs happening at all of Intel's sites, including their largest campus in Oregon. As The Oregonian notes, Intel has used several contractors in the past. Making moves to consolidate services with one contractor likely means Intel needs less people managing those systems. This could theoretically simplify the way Intel's internal IT services work, and allow it to respond to market changes more urgently. Granted, that's of little consolation to those losing their job.
While this could be one Intel's largest layoffs in recent memory, it's relatively minuscule compared to the 16,000 employees put out of work between 2016 and 2017 when Intel underwent a massive restructuring to wean itself off of the waning PC market and begin the data-centric era of Intel.