Intel layoffs to affect no more than a few hundred per site

PORTLAND, Ore. (AP) – The chief executive of Intel has confirmed that the company has an upcoming round of layoffs, although he did not say exactly how many people will lose their jobs.

The cuts will involve “generally no more than a few hundred employees” at any of Intel’s locations, according to a memo sent to employees by CEO Brian Krzanich Tuesday and reported by The Oregonian.

It’s the first time Intel has given any indication of how many people it plans to lay off.

The Oregonian previously reviewed an internal memo to managers that said the company would not “broadly communicate the program internally or externally.”

But Krzanich says he felt obligated to respond after media reports about the cuts.

“One thing I have always promised is to be open and transparent, and to treat employees and partners with respect and integrity,” he wrote in Tuesday’s memo.

He said some reductions will come from areas of the company that have become less important and some will be aimed at eliminating redundant activities and inefficiencies. Other layoffs will target employees with lower job performance.

Intel declined to comment on Krzanich’s memo or elaborate on its layoff plans.

The company is the world’s largest chipmaker and Oregon’s largest private employer, with 18,600 workers in Washington County. It initially expected 2015 sales to be up from last year’s record revenue, but revised its outlook after disappointing PC sales in the first quarter.

Intel now says it expects a flat year and announced $300 million in research and administrative cuts in April.

Krzanich wrote in Tuesday’s memo that he is deeply disappointed in the leaks of internal documents.

“For the vast majority of Intel employees, this has no impact,” he wrote. “The most important people we need to communicate with are those affected by these actions.”

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